Indicate whether each of the following should be considered a product cost or a period cost. I you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For instance, the answer to the Example item is "indirect product cost." Example: Property taxes on factory building. a. Cost of disposal of hazardous waste materials to a chemical plant. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home. b. с. Depreciation on sales showroom fixtures. d. Salaries of security guards in an administrative office building.

Indicate whether each of the following should be considered a product cost or a period cost. I you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For instance, the answer to the Example item is "indirect product cost." Example: Property taxes on factory building. a. Cost of disposal of hazardous waste materials to a chemical plant. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home. b. с. Depreciation on sales showroom fixtures. d. Salaries of security guards in an administrative office building.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4E: For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as...

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Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. Wages of administrative staff Shipping costs on merchandise sold Wages of workers assembling computers Cost of lease on factory equipment Insurance on factory Direct materials used in production of lamps Supervisor salary, factory Advertising costs Property taxes, factory Health insurance cost for company executives Rent on factory
For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officers salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operators
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