As we make the shift from your earlier financial accounting course and now move into the topics for this managerial accounting course, we have some new terminology that we'll need to learn. We're also going to categorize costs (expenses) in some ways that you've likely not yet seen. To start, feel free to address any one of the upcoming questions (you do NOT need to answer them all in one posting...just focus on one aspect of one of the questions, and later postings can then address other aspects and further extend the discussion).

1. Explain what we mean by a "product cost". Can you provide an example of an expense that would be categorized as a product cost?

2. Explain what we mean by a "period cost". Can you provide an example of an expense that would be categorized as a period cost?

3. Explain what we mean by a "variable cost". Can you provide an example of an expense that would be variable?

4. Explain what we mean by a "fixed cost". Can you provide an example of an expense that would be fixed?