Select the Appropriate Classification of Each of the Costs Listed

question 52

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.
-Depreciation on furniture in the factory lunchroom

• 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:

Chart Of Accounts

A systematic listing of all account titles and numbers being used by an organization to track its financial transactions and prepare financial statements.

Ledger

A comprehensive book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debit and credit entries in separate columns and a beginning and ending balance for each account.

Working Paper

Documents prepared by accountants during an audit that summarize the findings and support the final report.

Financial Statements

Reports that provide detailed information about a company's financial position, performance, and cash flows, helping stakeholders make informed decisions.