The Following Information Was Obtained from Fizz Company How Much Were Fizz's Period Costs?
A) $60,000
B) $81,000

question 9

Multiple Choice

The following information was obtained from Fizz Company: $$\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 9,900 \\\hline \text { Indirect Labor } & 11,000 \\\hline \text { CEO's Salary } & 49,000 \\\hline \text { Direct Labor } & 41,000 \\\hline \text { Indirect Materials } & 7,900 \\\hline \text { Direct Materials Used } & 61,000 \\\hline \text { Factory Utilities } & 700 \\\hline \text { Factory Janitorial Costs } & 2,300 \\\hline \text { Manufacturing Equipment Depreciation } & 2,100 \\\hline \text { Delivery Vehicle Depreciation } & 1,100 \\\hline \text { Administrative Wages and Salaries } & 21,000 \\\hline\end{array}$$ How much were Fizz's period costs?

• A) $60,000
• B) $81,000
• C) $92,000
• D) $79,900

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Definitions:

Accounts Receivable Approach

A method used by businesses to estimate the amount of credit sales that are not likely to be collected.

Aging Schedule

A method used in accounting to display the breakdown of receivables or payables by their due dates, helping businesses manage their cash flow.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Credit Report

A document that contains a detailed history of an individual's or company's credit activities and current credit situation.