How do a product cost and a period cost differ


Questions:

1. Why must the word cost be accompanied by an adjective to be meaningful?

2. Why is it necessary to specify a cost object before being able to distinguish between a direct cost and an indirect cost?

3. Why is it necessary for a company to specify a relevant range of activity when making assumptions about cost behavior?

4. How do cost drivers and cost predictors differ, and why is the distinction important?

5. How do a product cost and a period cost differ?

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Accounting Basics: How do a product cost and a period cost differ
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