From the choices presented in the parentheses, choose the appropriate term for c
ID: 2462591 • Letter: F
Question
From the choices presented in the parentheses, choose the appropriate term for completing each of the following sentences:
a) advertising expensesare usually viewed as ( period, product) cost
b) an example of factory overhead is (plant depreciation, sales office depreciation).
c) direct labor costs combined with factory overhead costs are called (prime, conversion) costs.
d) implementing automatic factory robotics equipment normally (increases, decreases) the factory overhead component of product costs.
e) materials that are an integral part of the manufactured product are classified as (direct materials, materials inventory).
f) paymentsof cash or its equivalent or the commitment to pay cash in the future for the purpose of generating revenues are ( costs, expenses).
g) the balance sheet of a manufacturee would include an account for ( cost of goods sold, work-in- process inventory).
h) the wages of an assembly worker are normally consider a (period, product) cost.
Explanation / Answer
Period costs are not a necessary part of the manufacturing process. As a result, period costs cannot be assigned to the products or to the costof inventory. The period costs are usually associated with the selling function of the business or its general administration.
A - period cost
B - plant depreciation
C. Conversion cost
D. Decreases
E. Direct material
F. Cost
G WIP INVENTORY
H . Product cost
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