Explain the difference between a product cost and a period cost.

TORTTUTVUITT TUOTTEILUUUTUT plant Steering wheels installed in BMWs V Section 2 2-1 What are the three major elements of product costs in a manufacturing company? Direct material, direct labour and manufacturing overheads 2-2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labour, (d) indirect labour, and (e) manufacturing overhead 2-3 Explain the difference between a product cost and a period cost. I 2-4 Describe how the stataement of profit or loss of a manufacturing company differs from the statement of profit or loss of a merchandising company 2-5 Describe how the inventory accounts of a manufacturing company differ from the inventory accounts of a merchandising company. BMWs Section 2 2-1 What are the three major elements of product costs in a manufacturing company? Direct material, direct labour and manufacturing overheads 2-2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labour, (d) indirect labour, and (e) manufacturing overhead. 2-3 Explain the difference between a product cost and a period cost. I 2-4 Describe how the stataement of profit or loss of a manufacturing company differs from the statement of profit or loss of a merchandising company. 2-5 Describe how the inventory accounts of a manufacturing company differ from the inventory accounts of a merchandising company. 2