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.

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.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter9: Cost Accounting For Service Businesses, The Balanced Scorecard, And Quality Costs

Section: Chapter Questions

Problem 5Q: What factors would you consider in deciding whether to use direct labor dollars or direct labor...

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What factors would you consider in deciding whether to use direct labor dollars or direct labor hours in charging overhead to jobs in a service firm?
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. Wages of administrative staff Shipping costs on merchandise sold Wages of workers assembling computers Cost of lease on factory equipment Insurance on factory Direct materials used in production of lamps Supervisor salary, factory Advertising costs Property taxes, factory Health insurance cost for company executives Rent on factory
Which one of the following is an example of a period cost? A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. Workers' compensation insurance on factory workers' wages allocated to the factory. A box cost associated with computers. A manager's salary for work that is done in the corporate head office.
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.
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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
Which of the following is an “indirect labor” cost? Wages paid to factory janitors and factory security guards. Salaries paid to human resources (HR) personnel. All of the listed choices are correct. Wages paid to factory employees who convert raw materials into work-in-process and finished goods. Sales salaries and commissions paid to salespeople.
Which of the following is an example of direct labor? Salary of the vice-president of operations Wages of factory security Wages of assembly line personnel Salary of a production manager
If a company fully allocates all of its overhead costs to jobs, does this guarantee that a profit will be earned for the period?
Why should an employee have some understanding of costing if they are not in the accounting department? Explain how the method of costing used will impact the company with: (A) the quoting of customer jobs and (B) gross margin/profit on the Income statement