Indicate whether each of the following costs for moped manufacturer is a product
ID: 2502829 • Letter: I
Question
Indicate whether each of the following costs for moped manufacturer is a product or a period cost, a variable or a fixed cost, a value-adding or a non value-adding cost, and, if it is a product cost, a direct or an indirect cost of the moped. Please explain why.
Item:
Product or Period:
Variable or Fixed:
Value-Adding or Non-Value Adding:
Direct or Indirect:
Item:
Product or Period:
Variable or Fixed:
Value-Adding or Non-Value Adding:
Direct or Indirect:
Office Rent
Labor to assemble moped
Labor to inspect moped
Accountants Salary
Lubricant for brakes
Note: I know office rent and accountant salary cannot be directly or indirectly to a cost object, as they are not product costs.
Explanation / Answer
Office : Period,fixed,non value adding,direct
Labor to assemble :period, fixed,value adding,direct
Labor to inspect:product, fixed,non value adding,direct
Accountant :period, fixed,non value adding,indirect
Lubricant :product, variable,non value adding,indirect