Question

Give one difference between product cost and period cost.

Distinguish between:

Production cost and period cost.

Answer 1

Basis of Distinction	Product Cost	Period Cost
Association	Product costs are those costs which are associated with production and which become part of the cost of a product.	Period costs are those costs that are associated with the period for which they are incurred.
Example	Sugarcane is used in producing sugar.	Rent of a telephone.