Explain why are ‘product costs’ called inventoriable costs.

What is the difference between product costs and period costs?
What are the components included in each of the three (3) types of inventory in a manufacturing operation?
What are the components of the cost of services provided by a service firm?
What is the difference between direct and indirect costs? Why is it important to properly identify the differences?
Explain why are ‘product costs’ called inventoriable costs.

Solution:

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