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Statement 1: Examples of period costs include payments to lawyers for litigation expenses related to cases filed by retrenched employees, payments for online advertisements that are shown in Facebook, Youtube and Tiktok, variable incentives paid to sales personnel for reaching the volume incentive for the year and overtime charges paid to line operators to manufacture products to cater surge in demand.  Statement 2: Direct materials of an automobile company include the imported metal car body, steering wheel, tires, side mirrors, wheel lubricants and headlights.     Both statements are true. Only Statement 1 is true. Only Statement 2 is true. Both statements are false.

Statement 1: Examples of period costs include payments to lawyers for litigation expenses related to cases filed by retrenched employees, payments for online advertisements that are shown in Facebook, Youtube and Tiktok, variable incentives paid to sales personnel for reaching the volume incentive for the year and overtime charges paid to line operators to manufacture products to cater surge in demand.  Statement 2: Direct materials of an automobile company include the imported metal car body, steering wheel, tires, side mirrors, wheel lubricants and headlights.     Both statements are true. Only Statement 1 is true. Only Statement 2 is true. Both statements are false.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...
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Statement 1: Examples of period costs include payments to lawyers for litigation expenses related to cases filed by retrenched employees, payments for online advertisements that are shown in Facebook, Youtube and Tiktok, variable incentives paid to sales personnel for reaching the volume incentive for the year and overtime charges paid to line operators to manufacture products to cater surge in demand. 

Statement 2: Direct materials of an automobile company include the imported metal car body, steering wheel, tires, side mirrors, wheel lubricants and headlights.
 
 
Both statements are true.
Only Statement 1 is true.
Only Statement 2 is true.
Both statements are false.
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