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How would the following costs be classified (product or period) under variable costing at a retail clothing store? Cost of purchasing clothing Sales commissions A) Product Product B) Product Period C) Period Product D) Period Period Question 9 options: A) Choice A B) Choice B C) Choice C D) Choice D

Sagot :

Answer:

B) Product Period

Explanation:

As we know that

The product cost is the cost that could be incurred for manufacturing or purchasing the product. All the expenses that are incurred for making the product for ready to sell is come under the product cost

While on the other hand, the period cost is the cost that could be deal with selling expenses

So, the option b is correct

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