Custom Publishers Company specializes in print-on-demand books. The company need

Question

Custom Publishers Company specializes in print-on-demand books. The company needs information to budget next year's activities. Write yes or no to indicate whether each of the following costs is likely to he available in the company's product costing system. cost of paper b. advertising costs c. printing machine setup costs d. depreciation of printing machinery e. repair costs for printing machinery f. costs to deliver books to customers g. office supplies costs h. sales commissions i. costs to design a book cover j. cost of ink

Explanation / Answer

A Yes Paper is the raw material so it will be available B No Indirect costs are not included in cost C Yes Manufacturing overehad costs are included in cost D Yes Manufacturing overehad costs are included in cost E Yes Manufacturing overehad costs are included in cost F No Delivery charges does not form product cost G No Indirect costs are not included in cost H No Indirect costs are not included in cost I Yes Manufacturing overehad costs are included in cost J Yes Ink is the raw material so it will be available

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