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Unformatted text preview: Period costs are costs that are matched with the revenue of a specific time period rather than included as part of the cost of a salable product. These are nonmanufacturing costs. Period costs include selling and administrative expenses. In order to determine net income, companies deduct these costs from revenues in the period in which they are incurred. Illustration 14-4 summarizes these relationships and cost terms. Our main concern in this chapter is with product costs. Illustration 14-4 Product versus period costs...
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- Fall '11