The Following Information Relates to Webster,Inc How Much Were Webster's Period Costs?
A) $85,200
B) $30,700

question 3

Multiple Choice

The following information relates to Webster,Inc.: $$\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 11,000 \\\hline \text { Administrative Salaries } & 15,600 \\\hline \text { Delivery Vehicle Depreciation } & 1,900 \\\hline \text { Factory Repair and Maintenance } & 200 \\\hline \text { Indirect Labor } & 19,500 \\\hline \text { Indirect Materials } & 10,000 \\\hline \text { Manufacturing Equipment Depreciation } & 1,000 \\\hline \text { Office Rent } & 50,000 \\\hline \text { President's Salary } & 2,200 \\\hline \text { Sales Revenue } & 530,000 \\\hline \text { Sales Salary } & 4,500 \\\hline\end{array}$$
How much were Webster's period costs?

• A) $85,200
• B) $30,700
• C) $534,500
• D) $6,700

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Definitions:

Research And Development (R&D)

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Diminishing Returns

A principle in economics that states after a certain point, the addition of a factor of production results in smaller increases in output.

Incremental Changes

Small, step-by-step modifications made to improve a process, product, or service over time.

Idea Generation

The creative process of generating, developing, and communicating new concepts or solutions.