Explain the difference between product and period costs. Why is it important to distinguish between them?

DQ1

Assessment Description

Explain the differences between direct and indirect costs, and give two examples of each while also explaining how they relate to the product/activity. Participate in follow-up discussion by adding additional elements or an additional explanation to those of a classmate.

DQ2

Assessment Description

Explain the difference between product and period costs. Why is it important to distinguish between them? Participate in follow-up discussion by providing examples of costs that fall under each and rationale behind distinguishing to those of a classmate.