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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 29
Basic Concepts
For each of the following costs incurred in a manufacturing firm, indicate whether the costs are fixed (F) or variable (V) and whether they are period costs (P) or product costs (M) under full absorption costing.
a. Energy to run forklifts that move products around the factory.
b. Depreciation on the building for administrative staff offices.
c. Bonuses of top executives in the company.
d. Overtime pay for assembly workers.
e. Transportation-in costs on materials purchased.
f. Assembly line workers' wages.
g. Travel cost for sales personnel.
h. Administrative support for sales supervisors.
i. Controller's office rental.
j. Cafeteria costs for the factory.
For each of the following costs incurred in a manufacturing firm, indicate whether the costs are fixed (F) or variable (V) and whether they are period costs (P) or product costs (M) under full absorption costing.
a. Energy to run forklifts that move products around the factory.
b. Depreciation on the building for administrative staff offices.
c. Bonuses of top executives in the company.
d. Overtime pay for assembly workers.
e. Transportation-in costs on materials purchased.
f. Assembly line workers' wages.
g. Travel cost for sales personnel.
h. Administrative support for sales supervisors.
i. Controller's office rental.
j. Cafeteria costs for the factory.
Explanation
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Verified
Indicate whether the costs are Fixed(f),...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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