Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.
 
Cost
Product
Period
Direct
Direct
Factory
Selling
Administrative
Direct
Indirect
Prime
Conversion
 
Cost
Materials
Labor
Overhead
Expense
Expense
Cost
Cost
Cost
Cost
Eggs used to make cheesecakes
 
 
 
 
 
 
 
 
 
 
 
 
Baker’s wages
 
 
 
 
 
 
 
 
 
 
 
 
Delivery driver wages
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation of office computers
 
 
 
 
 
 
 
 
 
 
 
 
Power to run the cheesecake ovens
 
 
 
 
 
 
 
 
 
 
 
 
President’s salary
 
 
 
 
 
 
 
 
 
 
 
 
Sales commissions
 
 
 
 
 
 
 
 
 
 
 
 
Factory supervisor salary
 
 
 
 
 
 
 
 
 
 
 
 
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