It has around 15000 employees overall units in the country. The company is engaged in business process outsourcing services. Of $ 6,38,800 expenses, only $ 4,44,300 can be treated as period cost. By period cost, we mean the cost related to a period & not to any product. Sales & COGS are product-related amounts. Let us look at the below examples of the Period Cost with calculations: Examples of period costs include depreciation of factory premises, fixed salary expense, company administration costs, allocated costs from head office, etc.Fixed costs are also called time costs.On the other hand, product costs are associated with the particular products & are included in the normal production valuation. These are unavoidable costs & thus, are not included in the inventory valuation. Period costs are not associated with any specific product.The company accounts for these costs in the year they are incurred.These are normally capacity-driven costs. These costs have no reference to the actual production units of the company.Some people refer to this cost as fixed cost. As the name suggests, the company has to incur “period” costs specific to a particular period.
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