Question 3What is the difference between the way product and period costs are accounted for?O Product costs are immediately expensed as COGS when incurred; period costs are added to the balance sheet as inventoryO Period costs are recorded to operating expenses when the products are sold; product costs are recorded to COGS as incurredO Product costs are added to inventory then moved to COGS when the items are sold; period costs are operating expensesO Period costs are part of COGS, product costs are operating expensesQuestion 4Messla, Inc. manufactures solar-powered vehicles. Some of the costs from the past year include:Depreciation on Delivery Trucks6,000Depreciation on Factory Building8,500Factory Janitor Salary2,500Assembly line Wages13,000Freight-in on Raw Materials2,000Insurance for the Factory6,500Costs to Deliver Products to Customers 2.000Advertising1.500Utilities for the Factory1,600Sheet metal used for vehicle frames9,000Factory maintenance supplies300Sales Commissions6,500Tires for vehicles1,000Utilities for the Sales Office2,100What is total manufacturing overhead?O 23,400O 29,400O 27,400O 19,400

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Question 3 What is the difference between the way product and period costs are accounted for? O Product costs are immediately expensed as COGS when incurred; period costs are added to the balance sheet as inventory O Period costs are recorded to operating expenses when the products are sold; product costs are recorded to COGS as incurred O Product costs are added to inventory then moved to COGS when the items are sold; period costs are operating expenses O Period costs are part of COGS, product costs are operating expenses

Question 3 What is the difference between the way product and period costs are accounted for? O Product costs are immediately expensed as COGS when incurred; period costs are added to the balance sheet as inventory O Period costs are recorded to operating expenses when the products are sold; product costs are recorded to COGS as incurred O Product costs are added to inventory then moved to COGS when the items are sold; period costs are operating expenses O Period costs are part of COGS, product costs are operating expenses

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 20MC: A multi-step income statement ________. A. separates cost of goods sold from operating expenses B....

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Ch Which of the following statements is true? Multiple Choice Product costs and variable costs are synonyms. Product costs are excluded from the calculation of gross margin. Product costs are included in inventory as reported on the balance sheet. Product costs include sales commissions and advertising.
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Question 6 Product costs that have become expenses can be found in: O selling expenses. cost of goods sold. administrative expenses. period costs. « Previous
Total cost + Profit:____ O a. Selling price O b. Cost of goods sold O c. Selling and distribution overheads O d. Gross Profit
Product costs are: * Treated in the same manner as period costs Subtracted from cost of goods sold Inventoried Expensed when incurred
Which of the following statements is true? Multiple Cholce Product costs and varlable costs are synonyms. Product costs are excluded from the calculation of gross margin. O Product costs are Included in Inventory as reported on the balance sheet. Product costs Include sales commisslons and advertising.
Which of the following is the best definition of product costs? a. Product costs are those costs that change with changes in the level of product activity, over a defined period of time. b. Product costs are the costs associated with unsold products retained in stock. c. Product costs are overhead costs that are allocated over a number of products of the business for which costs are to be determined d. Product costs are those costs associated with goods or services purchased, or produced, for sale to customers
Product costs … a. are costs that are included in the determining the value of the inventory. b. are all of these. c. prime costs d. include direct materials, direct labor, and overhead e. are manufacturing costs.
As inventoriable costs expire, they become a. sales b. cost of goods sold c. operating expenses d. gross profit
Selling Expense is an example of Period cost Product cost Cost of sales Cost of goods sold
Which of the following is an assumption of cost-volume-profit analysis? a. The inventory quantities during the period can change. b. Within the relevant range of operating activity, the efficiency of operations can change. c. Costs can be divided into fixed and variable components. d. The sales mix can vary. 5 Which of the following is an assumption of cost-volume-profit analysis? a. The inventory quantities during the period can change. b. Within the relevant range of operating activity, the efficiency of operations can change. c. Costs can be divided into fixed and variable components. d. The sales mix can vary.
Cost accounting