Do you think it makes sense to separate product costs fromperiod costs for management...

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Accounting

Do you think it makes sense to separate product costs fromperiod costs for management purposes? What about for externalreporting purposes? Why or why not? Should the costs be treateddifferently for management and external reporting purposes?

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Do you think it makes sense to separate product costs from period costs for management purposes The distinction between product costs and period costs is important becuase of the following reasons Properly measuring net income during a period of time Reporting the proper cost of inventory on the balance sheet Product costs cling to the units of products purchased or manufactured If a unit is unsold the product costs will be reported as inventory a current asset on the balance sheet The product costs for a retailer will be the amount paid to the supplier plus any freightin Product costs for a manufacturer will be the direct materials direct labor and manufacturing overhead Product costs will be reported on the income statement as the cost of goods sold expense in the period that the units of product are sold Period See Answer

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In: AccountingDo you think it makes sense to separate product costs fromperiod costs for management purposes?...Do you think it makes sense to separate product costs fromperiod costs for management purposes? What about for externalreporting purposes? Why or why not? Should the costs be treateddifferently for management and external reporting purposes?