Q. Is it possible for a company to have the same type of expenses listed under Product Cost as well as Period Cost? If so, what would be some examples? What key words would you look for to determine product costs from period costs?
product costs are the cost which is trace to the cost of product.which is included to cost of a product.
period costs are the cost which is not trace to the cost of product. which is excluded from cost of product, instead it is expensed as or deducted from the cost card
yes it is possible to have same type of expenses listed under product cost as well as period cost.
examples are electricity expenses , depreciation expenses et.c
electricity for manufacturing a product is product cost where as electricity for administration purposes or ware house are period cost.
similarly, depreciation for production equipment is product cost. but depreciation on the warehouse in which products are stored after being manufactured are period costs.
therefore, some costs can be simultaneously product cost and period costs.
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