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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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