Classification of Costs Using the Code Letters Below,indicate in the Space Provided How

question 28

Essay

Classification of costs
Using the code letters below,indicate in the space provided how each of the following costs should be classified in the indicated manufacturing company: Costs
____ (a)Research and development costs incurred by Martin,manufacturer of derailleurs,brakes,and other component parts for bicycles in its efforts to develop new products.
____ (b)Salaries paid by Martin to the plant managers supervising production operations.
____ (c)An inventory of Martin Group 105 components purchased by Earl Bicycle Corporation for use in the manufacture of Earl's Model 1200 aluminum bicycle.
____ (d)An inventory of Model 1200 bicycle frames manufactured by Earl.Prior to sale,these frames will be painted and equipped with derailleurs,brakes,and other component parts.
____ (e)Salaries paid by Earl to its sales personnel.
____ (f)Salaries paid by Earl to employees who install derailleurs,brakes,and other component parts on the bicycle frames.
____ (g)An inventory of Martin Group 105 derailleurs awaiting sale to customers.

Comprehend the significance of selecting a suitable layout for manufacturing and service businesses to optimize operations.

Understand the role and types of intermediaries in distribution channels.

Learn about the operational and financial implications of leasing versus owning business premises.

Recognize legal requirements affecting location decisions, including accessibility and zoning laws.

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Definitions:

Uncollectable Account

A debt or receivable that is considered to be uncollectible from a debtor, often because it is overdue or the debtor is unable to pay.

Collection Agency

An enterprise that seeks to collect payments from individuals or businesses on outstanding debts.

Pegboard System

A bookkeeping system that uses a lightweight board with pegs on which forms can be stacked, allowing each transaction to be entered and recorded on four different bookkeeping forms at once; also called the one-write system.

Superbill

An itemized form used by healthcare providers for reflecting rendered services, used for insurance or patient billing.