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After you type your initial post, read through the other entries and reply directly to at least two classmates on a different day than your initial post
After you type your initial post, read through the other entries and reply directly to at least two classmates on a different day than your initial post. Each response is worth four points. The response posts need to be at least two-three complete sentences. When you reply, please type the name of the classmate you are responding to, provide a welcome message to that person, and type your name at the bottom of the message.
For all posts make sure to use proper grammar, capitalization, (I instead of i) and punctuation in this college level course in all correspondence. Please avoid “text” or “twitter speak” when corresponding.
Expert Solution
Product costs are costs incurred while manufacturing the product. One example would be direct materials, such as silicon used to make computer chips. Another example would be direct labor, health insurance, for the laborers who are making the product. Health insurance for direct labor workers can be confused for manufacturing overhead. Since this is health insurance for the workers directly involved in making the product, it's called a product cost and not overhead.
Period costs are costs that aren't incurred while making the product but towards all other expenses of the business. One example would be advertising expenses, that are either fixed or variable. Another example would be rent expenses for the office building where the administrative staff work.
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