Select the Appropriate Classification of Each of the Costs Listed

question 108

Multiple Choice

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Wood used in the production process

• A)Product Cost, Direct Material
• B)Product Cost, Direct Labour
• C)Product Cost, Manufacturing Overhead
• D)Product Cost, Selling Expense
• E)Product Cost, Administrative Expense
• F)Period Cost, Direct Material
• G)Period Cost, Direct Labour
• H)Period Cost, Manufacturing Overhead
• I)Period Cost, Selling Expense
• J)Period Cost, Administrative Expense

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Definitions:

Price-Elasticity

A measure that indicates how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a significant response to price changes.

Supply Schedule

is a table or graph showing the quantity of a good that suppliers are willing to sell at different prices over a specific period.

Price Ranges

The spectrum of prices at which a particular good or service is sold in the market.

Equilibrium

A state where supply and demand are balanced, and in the absence of external influences, the values of economic variables will not change.