Classifying Costs as Product or Period Costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: Item Classification a.  Cost of information technology support for the corporate headquarters   b.  Depreciation on sewing machines   c.  Fabric used during production   d.  Depreciation on office equipment   e.  Advertising expenses   f.  Repairs and maintenance costs for sewing machines   g.  Salary of production quality control supervisor   h.  Utility costs for office building   i.  Sales commissions   j.  Salaries of distribution center personnel   k.  Wages of sewing machine operators   l.  Factory janitorial supplies   m.  Chief financial officer’s salary   n.  Travel costs of media relations employees   o.  Factory supervisors’ salaries   p.  Oil used to lubricate sewing machines   q.  Property taxes on factory building and equipment

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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Classifying Costs as Product or Period Costs

For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:

Item Classification
a.  Cost of information technology support for the corporate headquarters  
b.  Depreciation on sewing machines  
c.  Fabric used during production  
d.  Depreciation on office equipment  
e.  Advertising expenses  
f.  Repairs and maintenance costs for sewing machines  
g.  Salary of production quality control supervisor  
h.  Utility costs for office building  
i.  Sales commissions  
j.  Salaries of distribution center personnel  
k.  Wages of sewing machine operators  
l.  Factory janitorial supplies  
m.  Chief financial officer’s salary  
n.  Travel costs of media relations employees  
o.  Factory supervisors’ salaries  
p.  Oil used to lubricate sewing machines  
q.  Property taxes on factory building and equipment  
 
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