Periodic average costing is a method for calculating product costs that averages setup costs over the total units produced within a given period. It involves tracking direct materials, direct labor, and manufacturing overhead costs on a periodic basis, usually monthly. These costs are then divided by the total units produced during the period to calculate an average cost per unit.
Periodic average costing is a method for calculating product costs that averages setup costs over the total units produced within a given period. It involves tracking direct materials, direct labor, and manufacturing overhead costs on a periodic basis, usually monthly. These costs are then divided by the total units produced during the period to calculate an average cost per unit.
Periodic average costing is a method for calculating product costs that averages setup costs over the total units produced within a given period. It involves tracking direct materials, direct labor, and manufacturing overhead costs on a periodic basis, usually monthly. These costs are then divided by the total units produced during the period to calculate an average cost per unit.