10. An example of a period cost isO advertising expense.Cindirect materials.depreciation on factory equipment.property taxes on plant.

Introduction:- All costs are not related to production of a product is treated as period costs.

Answered: 10. An example of a period cost is O…

10. An example of a period cost is O advertising expense. O indirect materials. O depreciation on factory equipment. property taxes on plant.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 7MC: Conversion costs include all of the following except: A. wages of production workers B. depreciation...

See similar textbooks

Related questions

Q: Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 90,000 ho...

A: If the actual factory overhead is less than the budget allowance based on standard hours allowed for...

Q: Integrity Reconstructive is a private, not-for-profit hospital. The following information is availa...

A: Gross patient revenue is the total amount of all hospital bills issued each year. Net revenue is a c...

Q: Assume the following information pertaining to Star Company: Prime costs $ 195,000 Conversion costs ...

A: Prime cost is a combination of direct material used and direct labor. So direct labor is the differe...

Q: An animal shelter plans to sell T-shirts bearing their logo at an upcoming crafts fair. They find a ...

A: Cost of inventory = Cost of purchase + Cost of logo printing + Cost of freight in

Q: Gehring Company recently tried to improve analysis of its manufacturing process. There is no beginni...

Q: the total costs if the manufacturer decides to use: The economical quantity method

A: Given, Demand= 0+40+20+100+20+0+20+80= 280 Ordering cost= $125 Carrying cost= $1.65 per week Econ...

Q: Simar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs pres...

A: Unit cost of good units = (Total cost incurred - Realizable value of spoiled units) / No. of good un...

Q: Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,500, ...

A: Net Sales = Sales - Sales discount Sales discount = 2% Net sales = 100 - 2 = 98% Inventory purchase ...

Q: Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a sma...

A: Variance analysis is one of the important technique of management accounting under which all standar...

Q: the implementation of a new system would have a payback period of 5 years while gaining Php 175,000 ...

A: 1)Payback period is a period which shows how much time a project takes to recover the initial invest...

Q: AB Partnership’s operation for the year 2022 resulted in a profit of P180,000. Their profit sharing ...

A: Introduction:- Partnership business means agreement between two more persons to form a business and ...

Q: Direct Labor Variances The following data relate to labor cost for production of 5,800 cellular tel...

A: Direct Labor Rate Varaince = Actual Hours * (Actual rate per hour - Standard Rate Per Hour ) ...

Q: ABC Company is a relatively small dry-cleaning operation that has a very steady level of business. ...

A: Solution Fraud is the illegal alternation of a company's financial statements in order to manipulate...

Q: Joyous Company purchases 12,000 pounds of materials. The materials price variance is P6,000 favorabl...

A: Purchase material = 12000 pounds Material price variance = P 6000

Q: Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plan...

Q: alculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12...

A: EcoFabrics has budgeted overhead costs of $1,039,500. It has two main products - Wool and cotton. Th...

Q: Gross sales, P240,000 Purchases from VAT registered suppliers, P156,980 How much is the percentage ...

A: Percentage tax is the amount of tax which is paid by non VAT registered suppliers. It is indirect ta...

Q: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable lif...

A: Formula: Straight line method deprecation = ( Asset cost - Salvage value ) / Useful life

Q: Fundador Inc. makes two products, Wet and Dry, from a joint operating process. For the month of May ...

A: Net realizable value = Total sales - Further process costs where, Total sales = Sales price per unit...

Q: Far West Manufacturing Company operates a job-order costing system and applies overhead cost to jobs...

A: Prime cost means the addition of direct material and direct labor and other direct expenses. Manufac...

Q: A Corp uses predetermined Overhead application rate is based on direct labor hours. During the year,...

A: Predetermined overhead rate = Applied OH / Actual labor hours = P363,000 / P1,210,000 = 30%

Q: Evaluate the three strategies reducing income, increasing deductions and taking advantage of tax cre...

A: There are various strategies which the taxpayer can use so that the tax liability can be reduced leg...

Q: On October 01, 2021, a national government agency purchased and delivered 30 units of Communication ...

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or chang...

Q: He and She formed a partnership and to share in the profit or loss equally. She contributed building...

A: Amount to be credited to She’s Capital Account will be equal to the amount of Net Assets contributed...

Q: Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 20...

A: The refund liability = 2% FOB shipping point means the buyer pays the freight charges. FOB destinati...

Q: Sales Revenue: $8,000 -Tax Rate: 25% - Interest Expense: $70 - SGA Expenses: $1,300 - Other Revenue:...

A: The income statement explains the financial performance of the company for a particular period of ti...

Q: A. B and C are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700...

A: Closing capital of partners is to be calculated as follows = Openin...

Q: sing the financial information presented below: Operating Expenses $ 55,000 ...

A: Answer 1) Formula: Gross Profit = Net Sales – Cost of Goods Sold Gross Profit = (Sales – Sales retur...

Q: The standard number of hours that should have been worked for the output attained is 10,000 direct l...

A: Direct labor rate variance = Actual hours ×[Actual rate - standard rate]

Q: A mold for manufacturing powdered metal firearm parts is purchased by Remington at the beginning of ...

A: Depreciation under the Modified Accelerated Cost Recovery System seems to be a federal income tax sy...

Q: JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford Company has fiveemployees. All are paid on a monthly...

A: Payroll expenses are the total amount of salaries and wages which is paid to employees in exchange f...

Q: Estimate the preliminary cost for the listed projects. You can use RSMeans Square Foot Costs data, a...

A: Preliminary cost is also known as rough cost or approximate estimate. This method is used to determi...

Q: Analyse the measures that are taken in the detection of a fraud.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: Which of the following statements is false?A. Noncash activities should be reported in accrual basis...

A: Financial statements are those financial statements which are prepared at the end of accounting peri...

Q: Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandi...

A: The journal entry is the first step in the accounting process which signifies recording of financial...

Q: The A Company whose ending capital is P89,000 will be joined by Mr. B to form a partnership. Mr. B i...

A: The revaluation account is prepared to find the effect of changes on assets and liabilities on the p...

Q: Account Balance Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400...

A: Arenas ,Delay, and Laurent Statement of Liquidation June 30,2019

Q: The following information pertains to Ft. Collins Company's direct labor for March 2019: Standard di...

A: Formula: Actual labor cost = Actual Hours x Actual rate

Q: X Corp has $500 of book income. Included in the book income is $10 of dividends from a 10%-owned cor...

A: The taxable income is the amount used in determination of tax which is different from actual income ...

Q: Pleasant Heating & Cooling (PHC) Co. manufactures furnaces and air conditioners that are in great de...

A: Revenue from Contract With customers According ASC 606 the revenue from contract with customers whic...

Q: PROBLEM 6. After its cost structure (variable costs P15 per unit and monthly fixed costs of P125,000...

Q: Question 1: HKU Leasing agrees to lease equipment to Minion Furniture on January 1, 20X1. The follow...

A: Lease- It is a contract in which the lessee leases an asset from the lessor for a predetermined peri...

Q: Which of the following is not an advantage of the corporate form of business organization? a) unlim...

A: Introduction:- Corporation is a Legal entity. Shareholders are the owners of the organisation.

Q: 46. The Assembly Department started the month with 59,000 units in its beginning work in process inv...

A: Introduction:- The following basic information needs to be understood as follows under:- Assembly D...

Q: The Assembly Department started the month with 59,000 units in its beginning work in process invento...

A: Units transferred to the next processing department = Beginning work in process inventory + Addition...

Q: QUESTION 4 Each of the following is a O an extensive marketin O bonding of employee separation of du...

A: Internal control is a process designed, implemented and maintained by those charged with governance,...

Q: The balance sheet of Ipod Corporation on December 31, 2024: Ipod Corporation BALANCE SHEET AS OF DEC...

A: The net income is calculated as difference between sales revenue and total costs incurred. The incom...

Q: Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Happy, Inc. produc...

A: Variance is considered as the difference between budgeted value and actual results. The management u...

Q: PROBLEM 6. After its cost structure (variable costs P15 per unit and monthly fixed costs of P125,000...

A: The calculation for the above solution is given in the following steps for your reference.

Q: X Inc has used traditional costing where OH cost is applied based on 15% of Direct Labor cost. DL co...

A: Calculation of Total Cost assigned to Product G Product G Total Cost Direct Materials ...

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

10. An example of a period cost is
O advertising expense.
Cindirect materials.
depreciation on factory equipment.
property taxes on plant.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salary
Which of the following is a prime cost? A. indirect materials B. direct labor C. administrative expenses D. factory depreciation expenses
Conversion costs include all of the following except: A. wages of production workers B. depreciation on factory equipment C. factory utilities D. direct materials purchased
The following are classified under period costs, except: * 1 point a. Depreciation of factory equipment b. Depreciation of office equipment c. Commission of salesman d. Office supplies
Please solve this MCQs How would property taxes paid on a factory building be classified in a manufacturing company? Variable, period cost. Fixed, product cost. Fixed, period cost. Variable, product cost.
Which of the following costs would be considered a period rather than a product cost in a manufacturing company? Manufacturing equipment depreciation. Property taxes on corporate headquarters. Direct materials costs. Electrical costs to light the production facility.
Which of the following is an example of a cost that varies in proportion to changes in the activity base? Depreciation on machinery Packaging cost Factory rent Insurance cost
The following would be classified as product costs except:a. property taxes on production equipmentb. insurance on factory machineryc. wages of machine operatorsd. delivery expensee. answer not given
Identify each of the following costs as either a product cost or a period cost. Factory maintenance sales commissions depreciation factory equipment
23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a product? a.The direct labor costs used to manufacture the part b.The depreciation on the plant used to manufacture the part c.The fixed annual rent paid for the office building d.The salary of the sales manager who sells the product
Which of the cost below is not classified as fixed cost? a) Depreciation of machine b) Electricity c) Rental of factory d) Salary for production manager
Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Depreciation—Office equipment.