Indicate Whether Each of the Following Costs Is an Inventoriable

question 49

Essay

Indicate whether each of the following costs is an Inventoriable cost (I) or a Period cost (P):
1. depreciation on factory equipment
2. depreciation on treasurer's desk
3. direct materials
4. factory supplies
5. indirect labor
6. factory equipment repairs and maintenance
7. office supplies
8. advertising expense
9. depreciation on office equipment
10. direct labor
11. factory supervisor's salary
12. factory utilities
13. indirect materials
14. office salaries
15. sales commissions

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Definitions:

Synergistic Gains

The enhanced value or benefits realized by combining two or more entities or systems, exceeding what would be achieved individually.

Purchase Method

An accounting method used in mergers and acquisitions where the acquiring firm records the assets and liabilities of the acquired firm at their fair market value.

Balance Sheets

Balance Sheets are financial statements that summarize a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on managing processes that convert inputs into outputs.