Match Each of the Following Costs with the Appropriate Classification

question 38

Short Answer

Match each of the following costs with the appropriate classification (a-e).​
-Membership fees for a health club for executives
A)Product cost - direct materials
B)Product cost - direct labor
C)Product cost - factory overhead
D)Period cost - selling expense
E)Period cost - administrative expense

• A)Product cost - direct materials
• B)Product cost - direct labor
• C)Product cost - factory overhead
• D)Period cost - selling expense
• E)Period cost - administrative expense

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Definitions:

Formal Reasoning

A cognitive process involving the use of logical operations or established principles to arrive at conclusions, often associated with higher-order thinking and problem-solving.

Everyday Reasoning

Mundane reasoning that differs from formal reasoning in its use of implicit premises, multiple solutions, personal relevance, and possible emotional involvement.

Premises

Statements or propositions that serve as the basis for a conclusion or argument.

Wason's Four-card Task

A logical puzzle presented as a psychological experiment to study conditional reasoning and bias in decision making.