I'm so glad I found these videos... my accounting class is entirely online with no lectures, and I am not doing well teaching myself!! Thanks for making them!!
If Ed ever takes these fantastic videos down, my accounting professors are fucked, they might have to actually teach the material themselves instead of listing UA-cam links!
I had two managerial accounting teachers, well actually three since the first one had to be replaced in the beginning of semester because he was so bad. They were all very awful
If the insurance is for something not related to manufacturing, then it would be a period cost. If the insurance is related to manufacturing (i.e. insurance on the factory), then this would be considered manufacturing overhead and be a part of the product's cost.
Not all period costs are fixed costs. For example, you will have more selling costs as production increases. Thus selling costs would be a variable cost. However, something like a copy machine lease would be be a fixed amount per month.
That seems to be the case, see this link for more details: www.investopedia.com/ask/answers/102714/what-are-differences-between-period-costs-and-product-costs.asp
If it’s electricity for the factory then yes, it’s MOH so a product cost. If it’s electricity for an accounting office building then it’s a period cost.
I'm so glad I found these videos... my accounting class is entirely online with no lectures, and I am not doing well teaching myself!! Thanks for making them!!
you are angel .. thanks alot
If Ed ever takes these fantastic videos down, my accounting professors are fucked, they might have to actually teach the material themselves instead of listing UA-cam links!
I had two managerial accounting teachers, well actually three since the first one had to be replaced in the beginning of semester because he was so bad. They were all very awful
you are an angel… thank you so much for these videos…
I love these videos!!! very clear!!! saved my life!!!
Thank you!
You are saving my grade in accounting haha.. I can't express enough thanks
You got this!
I pay a 1000+ in fees per month to have this explained to me but I can find an even better explanation on UA-cam for free
The more production capabilities are maximized the lower period costs become!
Thank you thank you thank you thank you thank you thank you thank you thank you thank you thank you
Does insurance also including in period cost?
If the insurance is for something not related to manufacturing, then it would be a period cost. If the insurance is related to manufacturing (i.e. insurance on the factory), then this would be considered manufacturing overhead and be a part of the product's cost.
Thank you so much...textbook isn't so well at explaining these topics.
Is period cost are fixed cost?
Not all period costs are fixed costs. For example, you will have more selling costs as production increases. Thus selling costs would be a variable cost. However, something like a copy machine lease would be be a fixed amount per month.
No, not necessarily. For instance, commission is a variable cost but at the same time it is also Period Cost.
hi. Are all periods costs indirect costs? Thanks
That seems to be the case, see this link for more details: www.investopedia.com/ask/answers/102714/what-are-differences-between-period-costs-and-product-costs.asp
yes in a sense it is
Are electricity bills considered as a period cost?
If it’s electricity for the factory then yes, it’s MOH so a product cost. If it’s electricity for an accounting office building then it’s a period cost.
Thank you for this! Just one question, why is marketing a period cost? Isn't it connected to the products?
I have a factory and pay a monthly Electricity Bill.
Period cost?
or part of OH>>>product cost?
+Yoshi Negus MOH because it is related to the factory
If the utilities are related to the factory they are MOH and thus product costs
No, Manufacturing Overhead which falls under Product cost
goat