Identify Each Cost as a Period Cost or a Product

question 148

Multiple Choice

Identify each cost as a period cost or a product cost.
-Depreciation on the office equipment

• A)Product cost
• B)Period cost

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they agree.

Balance Sheet

A declaration that compiles the resources, obligations, and shareholder's equity of a business at a precise moment in time.

Debit Memo

A document issued by a buyer to a seller indicating an amount owed to the buyer, often due to a return or an error in billing.

Bank Service Charges

Fees charged by a bank to its customers for account maintenance and other financial services.