For Each Item Listed Below, Indicate in the Space to the Left

question 184

Short Answer

For each item listed below, indicate in the space to the left whether the item would be considered a product cost or a period cost for a manufacturing company. Use the following code:
Pr = Product cost
Pe = Period cost
____ 1. Factory supervisory salaries
____ 2. Sales commissions
____ 3. Income tax expense
____ 4. Indirect materials used
____ 5. Indirect labor
____ 6. Office salaries expense
____ 7. Property taxes on factory building
____ 8. Sales manager's salary
____ 9. Factory wages expense
____ 10. Direct materials used

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Definitions:

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, often measured by GDP.

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of the total population over a specific time period.

Catch-Up Effect

The hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies, allowing them to "catch up" over time.

Real GDP Per Person

A measure of the economic output of a country per individual adjusted for inflation, reflecting the average living standards.