Product versus period costs-fixed versus variable costs

Reference no: EM1358572

At a dinner party you hosted, a friend of yours who is a college accounting professor-upon hearing you had started your own business-told you to make sure to properly categorize product versus period costs and fixed versus variable costs. The friend did not have time to explain the difference or the importance of proper categorization to you.

Thinking this would be important information to pass on to your partner, do the following:

Research the topic.

Write a memo to your partner covering all of the following: Write a description of the difference between product and period costs and examples of each.

Include the definition of fixed versus variable costs along with examples of each in manufacturing, service, and retail businesses.

Explain how the financial results of a business would be reported differently if costs were not properly categorized.

Reference no: EM1358572

Questions Cloud

Consolidated earnings per share : Why is it not possible simply to add together the separately computed earnings per share amounts of individual affiliates in deriving consolidated earnings per share? Explain.

Find out the probability level test : Find out the probability of a 5%-level test rejecting the null hypothesis when the true mean impurity concentration is 2.10%.

Irrational or maladaptive assumptions : When you watch your favorite sitcom on television,do you see any irrational/maladaptive assumptions or attitudes that the characters display?

Compute the incremental net income of the investment : The Best Manufacturing Corporation is planning a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands, and corporate tax rate is 34%.

Product versus period costs-fixed versus variable costs : Write a memo to your partner covering all of the following: Write a description of the difference between product and period costs and examples of each. Explain how the financial results of a business would be reported differently if costs were not..

Write program to read file having student'' test scores : Write a C++ program that reads a file named "grades.txt" consisting of students' test scores in the range 0-200 (all integer values). (The first number in the file specifies the number of grades it contains.

What was the magnitude of force : A motor boat haeds due east at 5 m/s acorss a river that flows toward the south at 5 m/s. If the river is 125m wide, how longs does it take the boat to cross the river.

Human growth and socialization : What is the relationship between human development & socialization as it relates to anti -social behavior. How does it affect anti- social behavior.

Entry to record the purchase : Fison Corporation purchased 15,000 shares of its $2 par common stock at a cost of $12 each share on April 30, 2006. The stock was originally issued at $10 each share.

User Account

All Pages