Match Each of the Following Costs with the Appropriate Classification

question 103

Short Answer

Match each of the following costs with the appropriate classification (a-e).​
-Oil lubricants for factory plant and equipment
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:

Operating Cash Flow

A measure of the cash generated by a company's regular operational activities over a specific period.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating how much profit a company makes on sales.

Depreciation Expense

The allocation of the cost of an asset over its useful life.

After-tax Salvage Value

The net value of an asset after it has been sold and all related taxes have been paid.