Sales commission is a: a. Product and direct material cost. b. Product and direct labor cost. c. Product and manufacturing overhead cost. d. Period cost and Selling and Marketing expense. e. Period cost and General and Administrative expenses.

Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.

Using the costs listed in the previous problem, classify the costs as either product costs or period costs.

In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?