Identify whether each of the following costs should be classified as product costs or period costs. (a)    Period CostsProduct Costs   Manufacturing overhead. (b)    Period CostsProduct Costs   Selling expenses. (c)    Period CostsProduct Costs   Administrative expenses. (d)    Period CostsProduct Costs   Advertising expenses. (e)    Period CostsProduct Costs   Direct labor. (f)    Period CostsProduct Costs   Direct materials.

Q: Classify the following costs into either being product cost or period cost:(a) Raw material costs

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.…

Q: Product costs are expensed Group of answer choices When the product unit cost is calculated. When…

A: Solution: Product costs is capitalized in inventory when same is produced. However when products are…

Q: Conversion costs are: A. direct material, direct labor, and manufacturing overhead. B. direct…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following cost is included in cost of goods sold? customer service cost manufacturing…

A: In layman's language, the Cost of goods sold is nothing but the total cost incurred to produce a…

Q: Direct labor is included in the computation for the cost classified as     Group of answer choices…

A: Prime cost = Direct material + Direct labor Product cost = Direct material + Direct labor +…

Q: Conversion costs include A. product and period costs B. direct labor and manufacturing overhead…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). direct labor…

A: A cost that changes, in total dollar amount, with the change in the level of activity is called…

Q: Define the following: direct material costs, direct manufacturing-labor costs, manufacturing…

A: Direct Material Costs: It includes cost of direct materials used in manufacturing of finished goods.…

Q: are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost…

A: The costs which are not directly related to production process are called Period costs.These are not…

Q: The first step in applying the activity-based costing method is a. Identifying the cost drivers b.…

A: Activity Based Costing: Activity-based costing is a costing method in which a company identifies…

Q: Which of the following statements is true? Multiple Cholce Varlable costing treats direct materials…

A: The period costs are the costs which are expensed in the period they are incurred. Example selling…

Q: Indirect materials and indirect labour are classified as: O a. manufacturing overhead and product…

A: Costs that are not traced to the product directly are known as indirect costs. These costs are…

Q: The most important element of cost in manufacturing industries is : Select one: a. Labor b. Material…

A: Cost: It refers to the aggregated amount that is spent by the business in the process of…

Q: Which of the following is correct for total cost of product ?     Material + Labor + FOH…

A: Total cost of product : Total cost is derived by adding costs of Material , Labor and Factory…

Q: A costing approach in which all manufacturing costs are product costs." This statement best…

A: All manufacturing cost will include the direct material , direct labor , variable and fixed…

Q: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of…

A: In cost accounting, the cost sheet is prepared for tracking the level of cost and cost allocation at…

Q: Which one of the following are NOT period costs? a)  Advertising costs. b)  Indirect materials.…

A: Product cost are the costs that are directly or indirectly related to production. Direct Costs…

Q: Which of the following is not considered a product cost? Select one: a. direct labor b. direct…

A: Product cost includes all the cost incurred to manufacture the product.

Q: 1. Match one or more of the following terms with each definition below: Inventoriable product costs…

A: The given terms in the questions should be matched with definitions given below.

Q: Which of the following is not considered a product cost?   a.direct labor b.direct materials…

A: Lets first with the understanding meaning of product cost. Product cost means all cost incurred to…

Q: Which one of the following is another name for product costs? Select one: a. Direct costs b. Period…

A: Product cost means the cost of producing one unit of finished goods.

Q: The term “Prime cost” refers to a. All manufacturing costs incurred to produce units of output. b.…

A: Formula: Prime cost = Direct Materials + Direct labor cost

Q: Direct labor and direct materials are   a. period costs and expensed when the goods are sold   b.…

A: The different costs related to productions and selling are classified as product and period cost…

Q: Which of the following would be both a prime cost and a conversion cost? direct labor direct…

A: Process costing: Process costing is included costs like labor, material, and overhead which…

Q: Define cost accounting, what are the two basic types of product costing. Explain any one of them…

A: Cost accounting is that branch of accounting in which the cost to be incurred for the manufacturing,…

Q: For manufacturing costs to become expenses: O The product must be finished. The product must be…

A: Manufacturing cost is the total cost incurred in manufacturing the product. It includes the material…

Q: What term refers to a grouping of costs that consists of direct labor and factory overhead costs and…

A: Conversion cost is the total of labour cost and factory overhead cost/manufacturing Overhead cost.…

Q: Product costs are:     Treated in the same manner as period costs Subtracted from cost of goods sold…

A: There are two types of costs that are incurred in business. One is product costs and other is Period…

Q: Match one or more of the following terms with each definition below: a. Direct labour e.…

A: Introduction: The expenditures spent to sustain your company's day-to-day operations are referred to…

Q: Which of the following statements is TRUE?   a. Batch cost shall be the cost of production or…

A: Solution: Statement A= false  Because Process costing shall be the cost of production or operation…

Q: Compute the indirect manufacturing costs allocated to each product using activity based costing.

A: Activity based costing is a costing system in which indirect costs or overheads are allocated to…

Q: what are the three major components of product costs: direct materials, direct labor, and…

A: The costs of producing a product are referred to as product costs. Direct material, direct labour,…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

A:

Q: In a cost sheet for a manufactured product, the profit percentage is typically added to this figure…

A: Cost sheet is defined as the statement being prepared to record various costs associated to the…

Q: The three major components of cost of goods sold are: a. Direct labor, direct material, and profit…

A: Cost of goods sold means cost of producing the goods which are being sold by the organisation. This…

Q: What is the most important difference between a manufacturing firm and a service industry firm, with…

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: Calculate : a) Cost of raw materials consumed. b) Total cost of production. c) Cost of goods sold.

A: Hi student, Since there are multiple subparts in the question, we will answer only first three…

Q: With respect to cost classifications for manufacturers:a. What is the total manufacturing cost?b.…

A: For a manufacturer,  Total manufacturing cost = Direct Material Cost + Direct Labour Cost + Variable…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Office…

A: Definition: Office manager salary

Q: With respect to cost classifications for preparing financial statements:a. What is the total product…

A: a) Total Product cost is the cost which is incurred to manufacture the product that is intended for…

Q: Manufacturers have established a cost classification called product costs. Define the term "product…

A: Product costs - These are the costs incurred to manufacture an item. Costs incurred to manufacture a…

Q: Under variable costing, a unit of product includes which costs? A. direct material, direct labor,…

A: Variable costing: In the process of variable costing the fixed manufacturing overhead are not to be…

Q: Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production…

A: Process costing refers to an accounting system which is used by manufacturing companies who are…

Q: The three major cost components of manufacturing a product are,

A: Answer:(a) Manufacturing cost is the sum of costs of all used or consumed in the process of making a…