Complete the table below by classifying each cost as either a product cost or a period cost; for product costs, further classify as a direct cost or an indirect cost. (Select NA if not applicable.) Cost Amount Product or Period Direct or Indirect Plastic material and springs for clips $329 select a type of cost Correct answer select a classification Correct answer
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Complete the table below by classifying each cost as either a product cost or a period cost; for product costs, further classify as a direct cost or an indirect cost. (Select NA if not applicable.)
|
Cost
|
Amount
|
Product
or Period |
Direct
or Indirect |
|||
|---|---|---|---|---|---|---|
|
Plastic material and springs for clips
|
$329 | select a type of cost Correct answer | select a classification Correct answer | |||
|
CEO’s salary
|
119 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Advertising
|
34 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Research and development
|
24 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Wages for factory workers
|
429 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Utility costs in plant
|
76 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Plant supervisor salaries
|
195 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Depreciation of plant assets
|
63 | select a type of cost Correct answer | select a classification Correct answer | |||
|
Salaries and commissions to salespeople
|
214 | select a type of cost Correct answer | select a classification Correct answer |
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