Treatment ofc osts product and period+ time orientation of costs

Question 1

Product Costs

Answer 1

are manufacturing costs they include direct cost which are variable.

Question 2

What does product costs include

Answer 2

Also includes direct labour costs which are variable and they include indirect manufacturing overhead costs which can be fixed or variable,

Question 3

Period Costs

Answer 3

are non-manufacturing costs such as marketing costs or administration costs, these can be fixed or variable.

Question 4

Time orientation of costs past + future

Answer 4

means a business being aware of what has happened in the past in the relation to the cost and being aware of what will happen in the future