A Classmate Is Having Difficulty Understanding Two Sets of Accounting

question 13

Essay

A classmate is having difficulty understanding two sets of accounting terms, variable and fixed costs, as opposed to period and product costs.He understands that variable costs change during an accounting period while fixed costs do not.However, he explains that a period cost implies that it is for a period of time and is, therefore, also fixed.Does his assumption imply that all product costs are variable?
Required:
Assist your classmate in being able to distinguish between these terms.

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Definitions:

Class

refers to a group of people within society who share similar socio-economic conditions, earning potential, and lifestyle.

Hostile

Displaying or feeling enmity or opposition; unfriendly or adverse.

Simmel

A German sociologist and philosopher, Georg Simmel, known for his analyses of individual culture, social structures, and the intersection of individuality and modern society.

Objective Culture

The physical and institutional manifestations of culture, such as art, laws, and technology, which exist independently of individuals.