A New Employee in the Accounting Department Is Having Difficulty

question 187

Essay

A new employee in the accounting department 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 then variable?
Required:
As part of your responsibility to train new staff, explain the difference between these terms.

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Definitions:

Prostate Gland

A gland in the male reproductive system that produces fluid that nourishes and transports sperm during ejaculation.

Homologous

Structures or organs in different organisms that are derived from a common ancestor, displaying similarity due to evolutionary origin.

Bartholin's Glands

Glands located on either side of the vaginal opening, responsible for secreting mucus to lubricate the vagina.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.