Answered: Question 6 Product costs that have…

Question 6 Product costs that have become expenses can be found in: O selling expenses. cost of goods sold. administrative expenses. period costs. « Previous

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3DQ: How do you calculate the markup on cost of goods sold? Is the markup pure profit? Explain.

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Step 1 Introduction

The product cost is the cost including in the manufacturing process of the production. Example, direct labor cost, direct materials, etc.

The period cost is the total cost that is to be expensed in the period, it is incurred. Example, selling and administrative expenses, etc.

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