Asked by
Freedom Harper
on Nov 18, 2024
Verified
Factory machinery repairs and maintenance
A)Product cost
B)Period cost
Machinery Repairs
Expenditures incurred in fixing and maintaining machinery to ensure operational efficiency and extend its service life.
Product Cost
The total cost incurred to produce and prepare a product for sale, including materials, labor, and overhead expenses.
Period Cost
Costs unrelated to the direct production process, recognized as expenses in the period they happen, encompassing sales, general, and administrative expenditures.
- Distinguish and sort diverse cost types encountered in manufacturing contexts.
- Discern direct materials, direct labor, and manufacturing overhead as fundamental constituents of product costs.
Verified Answer
RP
Learning Objectives
- Distinguish and sort diverse cost types encountered in manufacturing contexts.
- Discern direct materials, direct labor, and manufacturing overhead as fundamental constituents of product costs.