To be sure, âSunday Night Footballâ remains the most expensive program on TV for advertisers, commanding an average of $637,330 for a 30-second spot. But its ability to gain more from Madison Avenue remains in doubt. Last season, the average price of a 30-second ad in the show fell 0.8% to $623,425.
In other words, selling, marketing, and advertising costs are not part of getting the products ready to sell. Since these costs are not incurred solely for the purpose of manufacturing products, they are not considered product costs. By default, since these costs are not product costs, they are period costs.
PRODUCT COSTING. Product costing is the process of tracking and studying all the various expenses that are accrued in the production and sale of a product, from raw materials purchases to expenses associated with transporting the final product to retail establishments.