ok int rences Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item 1. Hamburger buns in a Wendy's restaurant. 2. Advertising by a dental office. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Bausch & Lomb factory producing contact lenses. 6. Insurance on Nucor's corporate headquarters. 7. Salary of a supervisor overseeing production of printers at Ricoh. 8. Commissions paid to automobile salespersons. 9. Depreciation of factory lunchroom facilities at a General Electric plant. 10. Steering wheels installed in Tesla electric vehicles. Cost Classifications for Predicting Cost Behavior Cost Classifications for Preparing Financial Statements
ok int rences Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item 1. Hamburger buns in a Wendy's restaurant. 2. Advertising by a dental office. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Bausch & Lomb factory producing contact lenses. 6. Insurance on Nucor's corporate headquarters. 7. Salary of a supervisor overseeing production of printers at Ricoh. 8. Commissions paid to automobile salespersons. 9. Depreciation of factory lunchroom facilities at a General Electric plant. 10. Steering wheels installed in Tesla electric vehicles. Cost Classifications for Predicting Cost Behavior Cost Classifications for Preparing Financial Statements
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:- Chapter One i
Dok
int
erences
1
Mc
Graw
Hill
WAS
!
mand
Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as
either a period or a product cost.
1. Hamburger buns in a Wendy's restaurant.
2. Advertising by a dental office.
3. Apples processed and canned by Del Monte.
4. Shipping canned apples from a Del Monte plant to customers.
5. Insurance on a Bausch & Lomb factory producing contact lenses.
6. Insurance on Nucor's corporate headquarters.
7. Salary of a supervisor overseeing production of printers at Ricoh.
8. Commissions paid to automobile salespersons.
2
W
9. Depreciation of factory lunchroom facilities at a General Electric plant.
10. Steering wheels installed in Tesla electric vehicles.
S
H
X
7817
Cost Item
#3
E
D
C
3
$
4
R
F
V
< Prev
Saved
25
%
T
G
4 of 5
< 6
B
tv
Y
H
Cost Classifications
for Predicting Cost
Behavior
&
7
Next >
ONT
U
N
Live Photo
00
Cost Classifications
for Preparing
Financial Statements
8
-
M
Help
(
9
K
Screen Shot
Scree
Screen Shot
2023-01...0.40 PM 2023-01...2.52 PM 2022-12
A C
O
)
<
Save & Exit Sul
O
Check my wor
L
P
!!
E
{
Expert Solution
Step 1 Introduction
Product Cost :— It is the cost incurred in the manufacturing of product during the period.
Example:- Direct Material, Direct Labour, Factory rent, Depreciation on factory equipment, Assembly line supervisor salary, etc
Period Cost :— It is the cost that are not incurred in the manufacturing of product. It is cost incurred after manufacturing of product.
Example:- Advertising of product, Sales salaries, sales commission, selling and administrative expenses, etc.
Variable Cost :— It is the cost that changes with change in activity of cost driver.
Example:- Direct Material, direct labour cost, etc.
Fixed Cost :— It is the cost that does not changes with change in activity of cost driver.
Example:- Depreciation expense, Rent Expense, etc.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education