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

question 45

Essay

Classification of costs
Using the code letters below,indicate in the space provided how each of the following costs should be classified for a pen manufacturing company: Costs
____ (a)Property tax on the factory building.
____ (b)The chief financial officer's salary.
____ (c)Plastic used to manufacture pens.
____ (d)Janitors at the factory.
____ (e)Manufactured pens waiting to be sold to customers.
____ (f)Advertising logos.
____ (g)Partially completed pens.

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Definitions:

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified number of common shares of the issuing company.

Diluted Earnings

Represents the earnings per share (EPS) if all convertible securities were converted into common stock.

Dilutive

Referring to a financial action or arrangement, such as the issuance of new shares, that decreases an existing shareholder's percentage of ownership.

Antidilutive

Refers to financial transactions or securities that, if exercised or converted into common stock, would increase earnings per share.