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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16.3
Transcribed Image Text:**Chapter 16: Management Accounting**
- **e.** Salaries of factory security guards.
- **f.** Salaries of office workers in the credit department.
- **g.** Depreciation on the raw materials warehouse.
- **h.** Income taxes on a profitable manufacturing company.
Transcribed Image Text:Indicate whether each of the following should be considered a *product cost* or a *period cost*. If 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, a chemical plant.
b. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home.
c. Depreciation on sales showroom fixtures.
d. Salaries of security guards in an administrative office building.
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