Identify the following costs as a product cost or a period cost for a magazine publisher:a. Sales salariesb. Paper used for the magazinec. Maintenance on printing machinesd. Depreciation expense—corporate headquarters

Identify the following costs as a product cost or a period cost for a magazine publisher:a. Sales salariesb. Paper used for the magazinec. Maintenance on printing machinesd. Depreciation expense—corporate headquarters

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which one of the following is an example of a period cost? Maintenance on factory machines O Wages…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following is not a period cost? Group of answer choices Sales commissions. Public…

A: Cost can be divided in to different groups including period cost, product cost etc. Period cost are…

Q: 10. An example of a period cost is O advertising expense. O indirect materials. O depreciation on…

A: Introduction:- All costs are not related to production of a product is treated as period costs.

Q: Which of the following is a common fixed cost to the salesdepartments in a department store?a.…

Q: Who among the following is not a cost of a product? The expense of the company's fuel. The cost of…

A: Product cost: Product cost is the cost which incurred to manufacture a product. It means it is a…

Q: IDENTIFY THE FOLLOWING COST FOR THE PRODUCTION AND SALE OF A LAWN MOWER COMPANY WHETHER DIRECT…

A: Cost of production is the total cost incurred by the producer for the manufacturing of goods or for…

Q: A period cost includes all EXCEPT: Rental cost of administrative offices. b. Marketing. C. Salary of…

A: Period Cost:- It is a cost that is not related to the manufacturing cost of production or…

Q: 1.3 Separation between direct and indirect costs. Sort the costs by matching these in terms:…

A: 📌 Product CostsProduct costs, also known as inventoriable costs, are those costs that are directly…

Q: What costs are considered conversion costs? a. Steel in a car factory b. Depreciation on factory…

A: Conversion costs include the costs that are incurred to convert the raw material into usable goods.…

Q: Which of the following costs would be included on an income statement for both a merchandising…

A: Merchandising concern - This entity deals with buying and selling inventory from the supplier to the…

Q: Below is a table showing the various costs incurred by various companies. In each column, indicate…

A: Solution: Classification and explanation of each cost are as under:

Q: Identify whether each of the following costs should be classified as product costs or period costs.…

A: Product Costs : Product Costs means the direct costs incurred for production of a product. Product…

Q: The following are classified under period costs, except: * 1 point a. Depreciation of…

Q: For each of the following costs, identify whether it is a Fixed, Variable or Both

A: Introduction to variable cost- Variable cost is one of the costs among fixed cost and semi-variable…

Q: Which one is a product cost Select one: a. Travel Expenses b. Power c. Rent Factory Building d.…

A: Solution: Rent factory building is a product cost as this is a manufacturing overhead that…

Q: Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be…

A: Direct Material Cost Direct material cost is the cost of the raw materials and components used to…

Q: Which of the following is the primary source of revenue for a service business?A. the production of…

A: A service business seems to be a firm that offers professional services to its customers. The…

Q: QUESTION 4 Indicate whether each of the following costs incurred by a manufacture would be…

A: The cost to deliver finished product to customer It is a unit cost hence it is Product- MOH

Q: organiza 47. Which of the following is an example of a direct cost an organization might incur in…

A: The cost of the Raw Materials that go into the product is an example of a direct cost an…

Q: State and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental…

A: Theory of constraints is a method which was used to identify the constraints which is a key limiting…

Q: Factory rent Factory utilities Sales salaries expense Office salaries expense Indirect materials How…

A: A cost sheet is a written statement that shows the cost of manufacturing the product in every stage…

Q: Which one of the following is an example of a discretionary fixed cost? a. The depreciation cost of…

A: A discretionary fixed costs are those fixed which are avoidable for some shorter period and these…

Q: Classify each of the following costs as either unit-level, batch-level, product-level, or…

A: Activities that are completed every time a batch of goods or products is created, or a set of…

Q: Classify each of the following costs as Product (direct/indirect) or Period and Variable, Fixed or…

A: 1. Product costs are the costs directly incurred from the manufacturing process. Product costs are…

Q: Classify the following costs as either production or non-production Depreciation of plant…

A: Production Cost: This cost is directly related to the production of goods. These costs are generally…

Q: The salary paid to the president of a company would be classified on the income statement as a(n):…

A: Income statement is prepared at the end of accounting period. It includes all income and expenses…

Q: Cost of debt Tax Rate Cost of equity Debt/EV Part a. Source Debt Equity Part b. Source Debt Equity…

A: An important financial indicator called Weighted Average Cost of Capital (WACC) determines how much…

Q: From the choices presented in parentheses, choose the appropriate term for completing each of the…

A: Costs are classified into two categories Direct costs - which can be traced to product easily…

Q: fixed costs (F), variable costs (V), or mixed costs(M).

A: Fixed cost - Fixed cost remains constant irrespective of the level of activity. It is an unavoidable…

Q: (DL), or production overhead cost (POH). (i) Wages of production line workers. Maintenance of…

A: The total manufacturing costs comprises of direct materials cost, direct labor cost and factory…

Q: Classify the following costs as period or traceable costs. Depreciation on office building Insurance…

A: All indirect costs incurred during production are referred to as period costs. Examples of period…

Q: Trying to figure out how to calculate manufacturer compute cost of goods manufactured and cost of…

A: Schedule of cost of goods manufactured.

Q: Which one of the following discretionary fixed cost? The salary of the deputy manager of the factory…

A: Discretionary cost is the cost can be eliminated or reduced without at the discretion of the…

Q: Which of the following costs may be classified as fixed costs? i Direct labour ii Depreciation…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Explain the importance of Activity Based Costing for Selling and Administrative Expenses on a…

A: Activity-based costing is a method of determining product costs that take into account indirect…

Q: Determine whether each of the following costs should be classified as product costs or period costs.…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: 23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a…

A: Make cost is the cost in producing the product. Buy cost is the cost of purchasing or buying the…

Q: Indicate whether each cost is: A. Fixed or Variable b. Selling, General/Administrative, or…

A: Fixed Cost: The cost which does not tend to increase or decrease with the change in number of goods…

Q: Insurance expense incurred on a factory building would be treated as a Group of answer choices…

A: Cost is the value spent to make or buy a product. Value spent can be in the form of raw materials,…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Identify the following costs as a product cost or a period cost for a magazine publisher:
a. Sales salaries
b. Paper used for the magazine
c. Maintenance on printing machines
d. Depreciation expense—corporate headquarters

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which can be considered a product cost in a manufacturing company? - corporate tax -sales commissions - property rate -equipment depreciation
Question Content Area Which of the following would be included in the cost of a product manufactured according to absorption costing? a. sales salaries b. advertising expense c. office supplies costs d. depreciation expense on factory building
Classifying Costs as Product or Period Costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: Item Classification a. Cost of information technology support for the corporate headquarters b. Depreciation on sewing machines c. Fabric used during production d. Depreciation on office equipment e. Advertising expenses f. Repairs and maintenance costs for seving machines g. Salary of production quality control supervisor h. Utility costs for office building i. Sales commissions j. Salaries of distribution center personnel k. Wages of sewing machine operators I. Factory janitorial supplies m. Chief financial officer's salary n. Travel costs of media relations employees o. Factory supervisors' salaries Oil used to lubricate sewing machines q. Property taxes on factory building and equipment
The cost of telephone servoce for the executive offices * O Product Cost O Period Cost
Plz explain it to in detail
Which of the following is a direct cost with respect to producing a motor car? a. Salary of production supervisor b. Plant utilities c. Cost of car engine d. Depreciation of plant & equipment
Salaries and commissions of company salesperson O Product Cost O Period Cost
Insurance expense incurred on a factory building would be treated as a a.period cost b.selling cost c.direct cost d.product cost
Which of the following is a period cost? a. Property taxes on the production facilities. b. The production supervisor's salary. c. Costs to ship the product to the customer. d. Depreciation of the factory equipment.