Identify Each Cost as a Period Cost or a Product

question 53

Multiple Choice

Identify each cost as a period cost or a product cost.
-Wages for the assembly line workers

• A)Product cost
• B)Period cost

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Definitions:

Goods Arrive

The event or process where purchased or ordered products reach their destination or the buyer's location.

Fungible Goods

Goods of which any unit is identical from another and can be substituted, such as grains, fuels, or money.

Equivalent Unit

A concept in cost accounting used to express the amount of work in progress inventory in terms of fully completed units of output.

Goods

Tangible personal property or merchandise.