Question: Why is it important to differentiate between product and period costs? Why do we need to be able to allocate costs to a particular period

Why is it important to differentiate between product and period costs? Why do we need to be able to allocate costs to a particular period and for that matter a particular product? Can you think of any ways a company may be able to best allocate overhead type costs out to the products and other areas that use the overhead?

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