what is the difference between product cost and period cost
Product costs are also called variable costs. It refers to that cost which varies in direct proportion to the volume of output. The cost per unit of product cost remains unchanged as production increases or decreases but total cost increases. So such type of costs are called product costs. For example; cost of direct material, direct labor and direct expenses. Image Source:advancedmp.com/wp-content/uploads/2013/11/cost_roller.jpg. Period cost is the fixed cost. It refers to that cost which remains unchanged by change in volume of out put. Fixed cost per unit decreases as production increases and increases as production declines.
Product costs is the costs are the costs incurred in the making of the product. Manufacturing costs --Direct Materials, Direct Labor, and Manufacturing Overhead.