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For the following identify if each object is a Product Cost (P), a General Selli

ID: 2475212 • Letter: F

Question

For the following identify if each object is a Product Cost (P), a General Selling and Administrative Cost (Period Cost) (G), or could be both (B) depending on the location

Rental of Sales Office        _____                    Direct Material                    _____

Factory Depreciation          _____                    Freight Out                            _____

Factory Supervision            _____                    Research & Dev.                  _____

Real Estate Taxes                               _____                    Part-time workers                                _____

CEO’s Salary                        _____                    Utilities                                   _____

Machinery Depreciation    _____                    Maintenance                        _____

Direct Labor                         _____                    Sales Commissions             _____

Sales Salaries                        _____

Explanation / Answer

Rental of Sales Office        G                 Direct Material                    B

Factory Depreciation          P                   Freight Out                            G

Factory Supervision            P                    Research & Dev.                  B

Real Estate Taxes                               P                    Part-time workers      P                         

CEO’s Salary                        P              Utilities                                   P

Machinery Depreciation   P                    Maintenance                        P

Direct Labor                         P                   Sales Commissions             G

Sales Salaries                        G