Bosely Manufacturing Co

question 102

Essay

Bosely Manufacturing Co. wants to classify costs for the product produced at its facility. The company produces only one product at the facility and operates continually. The cost categories are:
The following costs are found in the accounting records:
Required:
Assign each of the above costs to the most appropriate cost categories.

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Definitions:

Private Good

A good that is both excludable and rivalrous, meaning it can only be used by one person at a time, and access to it can be restricted.

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission or payment.

Rival

An entity competing against another in the same market, striving for a greater share of assets, customers, or recognition.

Nonexcludable

A property of a good where it is not possible to prevent individuals from consuming the good, regardless of whether they have paid for it.