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Sir, could you please clarify the distinctions between production cost and product cost, as well as non-production costs and period costs? Are these terms interchangeable? Thanks very much, sir!
Production costs are cost in the factory of actually making the goods. Full product costs also include other costs such as the cost of delivering to the customer (i.e. non-production costs).
Period costs are costs fixed for a period rather than depending on the level of production. For example the rent of the factory is a fixed cost per month regardless of how many units are produced during the months. Period costs may be production or non-production costs.
Have you watched all of my free lectures where this is all explained?
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