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 to 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. e. Salaries of factory security guards. Direct product cost Indirect product cost f. Salaries of office workers in the credit department. Period cost g. Depreciation on the raw materials warehouse. h. Income taxes on a profitable manufacturing company.
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 to 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. e. Salaries of factory security guards. Direct product cost Indirect product cost f. Salaries of office workers in the credit department. Period cost g. Depreciation on the raw materials warehouse. h. Income taxes on a profitable manufacturing company.
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 1CMA: Which of the following items would not be considered a manufacturing cost?
Cream for an ice cream...
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