Match Each of the Following Costs with the Appropriate Classification

question 17

Short Answer

Match each of the following costs with the appropriate classification (a-e).​
-Depreciation on factory 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:

Net Balance

The amount remaining in an account after all deductions are made, including potential expenses or charges.

Finance Charge

The total cost of borrowing, including interest and any other charges assessed by the creditor.

Monthly Interest Rate

The percentage of interest that is calculated and applied on a monthly basis to loans, savings, or investments.

Amortizes

The process of gradually paying off debt through a series of fixed payments over time, which covers both interest and principal.