1. Give an example of a period cost. How does this differ from a product cost?
2. Review the main differences between job order and process costing. What variables might a company consider before choosing one of these methods? Give an example of a company that uses job order costing. Give an example of a company that uses process costing.
i need a paragraph for question 1 and 2. This is two separte question
A period cost is referred as the cost which cannot be capitalized into fixed assets, inventory, or prepaid expenses. As a matter of fact, this type of cost is closely associated with time passage than the transactional event. Some examples of period cost include interest, office rent, sales commission, depreciation of the office building, and the advertising expenses. One major way that period cost differs from product cost is that period costs are not…