Describe the difference between period costs and product costs. a. are operating costs that are expensed in the accounting period in which they are incurred. b.Period costs Product costs are all costs of a product that c. GAAP GAAS the IRS the SEC requires companies to treat as an asset for external financial reporting. These costs are recorded as an asset​ (inventory) on the balance sheet until the asset is sold. The cost is then transferred to an expense account ​ d. Cost of Goods Manufactured Cost of Goods Sold Inventory Expense Product Expense ​) on the income statement.

Answer:c. products costs: These costs are recorded as an asset​ (inventory) on the balance sheet until the asset is sold. The cost is then transferred to an expense account ​Step-by-step explanation:Product costs are those costs that are identified with goods purchased or produced for resale. these cost are Recorded as an asset (inventory) in the balance sheet and becomes an expense in the profit and loss account when the product is sold .In a manufacturing organization they are costs that are attached to the product and that are included in the inventory valuation for finished goods, or for partly completed goods (work in progress), until they are sold; they are then recorded as expenses and matched against sales for calculating profit. Period costs are those costs that are not included in the inventory valuation and as a result are treated as expenses in the period in which they are incurred. Hence no attempt is made to attach period costs to products for inventory valuation purposes.they are recorded as an expense in the profit and loss account in the current accounting period