Costs that should be added to the actual cost of goods are direct material, direct labor & manufacturing overhead.
Period costs are not included in cost of goods . Costs that are charged to expense when they’re recorded are known as period costs. Marketing costs (such as advertising, sales personnel, or delivery of products to customers) are period costs. These selling costs are recorded as expenses in the period the costs are incurred. General and administrative costs (such as legal and accounting, compensation of officers, or information and data processing) are also period costs.
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