Select the Appropriate Classification of Each of the Costs Listed

question 201

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.
-National advertising campaign costs

• 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:

Marginal Benefits

The additional satisfaction or value that one receives from consuming or producing one more unit of a good or service.

Production Possibilities

A curve or frontier that shows various combinations of the amounts of two goods or services that can be produced within the limits of available resources and technology.

Specialization

The process or strategy of focusing on a narrow area of expertise or production to gain efficiency or quality in the output.

Production Possibilities Curve

A graphical representation of the maximum goods and services that a society can produce, given its productive resources and technology.