Definitions

Question 1

Product Cost

Answer 1

Cost added to the cost price of a unit
of inventory

(included in cost of sales)

Question 2

Period Cost

Answer 2

Absence of a logical basis to allocate costs would mean that a cost cannot be treated as a product cost (because it is not specific to the item itself) and therefore must he treated as a period cost.

Cost written off as an expense for the reporting period.