Indicate Whether Each of the Following Costs Is a Product

question 220

Essay

Indicate whether each of the following costs is a product cost or a period cost. Assume it is for a manufacturer.
A. ________ direct materials used in factory
B. ________ factory utilities
C. ________ salespersons' commissions
D. ________ salary of plant manager
E. ________ indirect materials used in factory
F. ________ depreciation expense on store equipment
G. ________ indirect labor incurred in factory
H. ________ advertising expense
I. ________ direct labor incurred in factory
J. ________ factory machinery repairs and maintenance
K. ________ depreciation expense on factory machinery
L. ________ supplies used in store
M. ________ plant insurance expired

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Definitions:

Crystal Ball

A metaphorical term referring to the attempt to predict future events or outcomes, often used in the context of business forecasting or decision making.

Crystal Ball

A forecasting and risk analysis software used in financial, operational, and project applications.

Program Evaluation and Review Technique

The Program Evaluation and Review Technique (PERT) is a project management tool used to estimate the duration of a project by analyzing the time required for various tasks.

Project Management

The practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at a specified time.