Chapter 1, Problem 1.2DI

Identify managerial cost classifications.

(LO 2), C

A music company has these costs:

Advertising	Paper inscris for CD cases
Blank CDs	CD plastic cases
Depreciation of CD image burner	Salaries of sales representatives
	Salaries of factory maintenance employees
Salary of factory manager	Salaries of employees who bum music onto CDs
Factory supplies used

Classify each cost as a period or a product cost. Within the product cost category, indicate if the cost is part of direct materials (DM), direct labor (DL). or manufacturing overhead (MO).