Period Vs. Product Costs

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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


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