Which of the following is an example of a period cost in a company thatmakes clothing?a. Fabric used to produce men's pants.b. Advertising cost for a new line of clothing.c. Factory supervisor's salary.d. Monthly depreciation on production equipment.

Step 1: Understand the Difference Between Period Costs and Product CostsPeriod Costs:These are…

Answered: Which of the following is an example of…

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 4E: For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as...

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Which of the following would most likely be a period cost? Depreciation on factory lunchroom furniture. Salary of telephone receptionist in the sales office. Salary of a security guard for the factory parking lot. Computer chips used by a computer manufacturer.
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Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. a. Wages of administrative staff b. Shipping costs on merchandise sold C. Wages of workers assembling computers d. Cost of lease on factory equipment e. Insurance on factory f. Direct materials used in production of lamps g. Supervisor salary, factory h. Advertising costs_ i. Property taxes, factory j. Health insurance cost for company executives k. Rent on factory
Required: Classify the following costs as period or traceable costs. Depreciation on office building Insurance expense for factory building Product liability insurance premium Transportation charges for raw materials Factory repairs and maintenance Rent for inventory warehouse Cost of raw materials Factory wages Salary to chief executive officer Depreciation on factory Bonus to factory workers Salary to marketing staff Administrative expenses Bad debt expense Advertising expense Research and development Warranty expense Electricity for plant
Identify the following costs as a product cost or a period cost for an automobile manufacturer:a. Steelb. Wages of employees that operate painting equipmentc. Rent on office buildingd. Sales staff salaries
Which of the following is not a cost resulting from a unit-level activity? a) The cost of electricity to power manufacturing equipment. b) The indirect cost of glue used on each product. c) The cost of sending monthly statements to customers. d) The per unit cost of packaging goods.
Answer
For a manufacturing company, which of the following is an example of a period cost rather than a product cost? a. Depreciation on factory equipment b. Advertising expense c. Wages of machine operators d. Insurance on factory equipment
Why is it important to know if a cost of production is fixed or variable? Which one of the following is an example of a period cost? A. A change in benefits for the union workers who work in the New York plant of a Fortune 1,000 manufacturer. B. Workers' compensation insurance on factory workers' wages allocated to the factory. C. A box cost associated with computers. D. A manager's salary for work that is done in the corporate head office. Discuss the role of strategic cost management in the operations of an organization.
Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $100,000 60,000 7,500 110,000 13,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 14,000 21,000 35,000 50,000
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Listed here are product costs for production of soccer balls. Classify each cost as either direct or indirect. Product Cost 1. Coolants for machinery 2. Wages of product assembly workers 3. Annual flat fee paid for factory security 4. Taxes on factory 5. Machinery depreciation (straight-line) 6. Rubber bladder interior for balls 7. Factory building rent 8. Wages of factory machine operators 9. Wages of factory maintenance workers 10. Factory supervisor salary Direct or Indirect

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Which of the following is an example of a period cost in a company that makes clothing? a. Fabric used to produce men's pants. b. Advertising cost for a new line of clothing. c. Factory supervisor's salary. d. Monthly depreciation on production equipment.