Product Cost Versus Period Cost: Learning Objectives of this article: Define and explain the terms “product cost” and “period cost”. Give examples of each. What is the difference between product cost and period cost. In addition to the distinction between manufacturing and non-manufacturing costs,
Explanation of Period Costs
Explanation of Period Costs is Selling and general administrative expenses identified with the accounting period in which they are incurred, and the charged against sales revenue in the same period this is called period expense.