Indicate whether each of the following should be considered a product cost or a
ID: 2488586 • Letter: I
Question
Indicate whether each of the following should be considered a product cost or a period cost. If you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For example, the answer to item 0 is “indirect product cost.” Begin with item a. 0. Property taxes on factory building. a. Cost of disposal of hazardous waste materials to a chemical plant. b. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home. c. Depreciation on sales showroom fixtures. d. Salaries of security guards in an administrative office building. e. Salaries of factory security guards. f. Salaries of office workers in the credit department. g. Depreciation on the raw materials warehouse. h. Income taxes on a profitable manufacturing company.
Explanation / Answer
product/period direct/indirect Property taxes on factory building product indirect Cost of disposal of hazardous waste materials product indirect Amounts paid by a mobile home manufacturer to a subcontractor product indirect Depreciation on sales showroom fixtures period indirect Salaries of security guards in an administrative office building period indirect Salaries of factory security guards product indirect Salaries of office workers in the credit department period indirect Depreciation on the raw materials warehouse product indirect Income taxes on a profitable manufacturing company product indirect