What Are Period Costs

What Are Period Costsの概要と注目ポイントをわかりやすく整理しました。

The name comes from the fact that you tie the expense to a specific period of time (a month, a quarter, a year). Not to a specific product.

You aren't saying "this rent is for that one batch of cookies." You say "this rent is for January."

So, they’re named after the calendar period, not the product lifecycle. Fancy, huh?

The Sneaky Trap to Avoid

If you ever start a business, avoid this trap: thinking period costs are optional. They aren't. You need a bank account. You need insurance. You need that coffee machine to keep your employees from quitting.

Treating period costs as "the bad guys" is a mistake. Without them, you can't sell your product. You'd just be a person standing on a street corner holding a lemon.

So embrace them. Manage them. But don't ignore them.