Period Vs. Product Costs
Advertising costs
Period cost
Cost of leasing the corporate jet used by the company's executives.
Period cost
Depreciation on salespersons' cars
Period cost
Materials used for boxing products for shipment overseas. (Units are not normally boxed.)
Period cost
Salaries of personnel who work in the finished goods warehouse
Period cost
The cost of renting rooms at a Florida resort for the annual sales conference.
Period cost
The wages of the receptionist in the administrative offices.
Period cost
Depreciation on chairs and tables in the factory lunchroom.
Product cost
Factory supervisors' salaries.
Product cost
Heat water, and power consumed in the factory.,
Product cost
Lubricants used for machine maintenance
Product cost
Rent on equipment used in the factory
Product cost
Soap and paper towels used by factory workers at the end of a shift.
Product cost
The cost of packaging the company's product
Product cost
Workers' compensation insurance for factory employees.
Product cost