For Each of the Following, Indicate Whether the Cost Would

question 210

Multiple Choice

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Indirect labor incurred

• A)Product
• B)Period

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Definitions:

Service Organization

A business that provides professional services or expertise to clients, rather than tangible goods.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as sales and administrative expenses.

Production Requirements

The specific inputs and conditions needed for the production process to create goods or services.

Direct Labor Cost

The cost of wages paid to workers directly involved in manufacturing a product or providing a service, excluding indirect labor involved in support roles.