Question

Question 1: Product and period costs a) In a manufacturing firm, product costs include O all fixed costs O al variable costs O all manufacturing costs O all non-manufacturing costs all GAAP costs period costs include O all manufacturing costs O all fixed costs O all non-manufacturing costs O all non-GAAP costs O all variable costs b) Classify the following items as product or period costs: Rent for the factory building Rent for the sales office Depreciation on production equipment Depreciation on sales office equipment Production supervisor's salary Marketing manager's salary Assembly workers wages Materials used in production Office supplies used in the customer service department product period product period product period product period product period product period product period product period product O period

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MANAGERIAL ACCOUNTING QUESTIONS

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Answer 1

Answer:

A)

In a manufacturing firm,

Product costs Include:

Answer: all manufacturing costs

Explanation: Product costs Include all manufacturing cost either it is fixed manufacturing cost or variable manufacturing cost

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Period costs Include:

Answer: all Non-manufacturing costs

Explanation : Non manufacturing cost are indirect cost like rent , selling and administrative expenses, depreciation etc.

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B)

Rent for the factory building	Product cost
Rent for the sales office	Period cost
Depreciation on production equipment	Product cost
Depreciation on sales office equipment	Period cost
Production supervisor's salary	Product cost
Marketing manager's salary	Period cost
Assembly workers' wages	Product cost
Materials used in production	Product cost
Office supplies used in the customer service department	Period cost