apter 14: Managerial Accounting Concepts and Principles efine product and period costs and explain how they impact financial statements. nowledge Check 02 ag and drop the correct term with its proper definition. These include selling and general administrative expenses. Product Costs drop item here Classification of costs as direct or indirect. Period Costs drop item here Classification of costs as variable or fixed. Behavior drop item hore These include direct materials, direct labor and indirect manufacturing costs called overhead costs. Traceability drop iRons Isore