Managerial Accounting and Cost Concepts

Library Research Project

At a dinner party you hosted, a friend of yours who is a college accounting professor, upon hearing you had started your own business, told you to make sure to properly categorize product versus period costs and fixed versus variable costs. The friend did not have time to explain the difference or the importance of proper categorization to you.

Thinking this would be important information to pass on to your partner, do the following:

  • Research the topic.
  • Write a memo to your partner covering all of the following:
    • Write a description of the difference between product and period costs and examples of each.
    • Include the definition of fixed versus variable costs along with examples of each in manufacturing, service, and retail businesses
    • Explain how the financial results of a business would be reported differently if costs were not properly categorized.
  • Include citations and references in APA style.
  • 500-700 words minimum

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