Uniquely Me Shoppe,a clothing retailer,had the following total costs as grouped by value chain element: $$\begin{array} { | l | c c | }
\hline \text { Research and development } & \$ & 53,000 \
\hline \text { Design } & \$ & 17,000 \
\hline \text { Purchases } & \$ & 99,000 \
\hline \text { Marketing } & \$ & 42,000 \
\hline \text { Distribution } & \$ & 68,000 \
\hline \text { Custumer service } & \$ &27,000 \
\hline
\end{array}$$
-What were the company's period costs?

Question

Uniquely Me Shoppe,a clothing retailer,had the following total costs as grouped by value chain element: $$\begin{array} { | l | c c | } 
\hline \text { Research and development } & \$ & 53,000 \
\hline \text { Design } & \$ & 17,000 \
\hline \text { Purchases } & \$ & 99,000 \
\hline \text { Marketing } & \$ & 42,000 \
\hline \text { Distribution } & \$ & 68,000 \
\hline \text { Custumer service } & \$ &27,000 \
\hline
\end{array}$$ 
-What were the company's period costs?

Quizplus · Accepted Answer

Period costs include all costs that are not directly tied to the production process, such as marketing, distribution, and customer service. Adding these costs: $42,000 (Marketing) + $68,000 (Distribution) + $27,000 (Customer Service) = $137,000$. However, the correct total for period costs should include all costs except purchases, which are product costs. Therefore, $53,000 (R&D) + $17,000 (Design) + $42,000 (Marketing) + $68,000 (Distribution) + $27,000 (Customer Service) = $207,000.

Uniquely Me Shoppe,a Clothing Retailer,had the Following Total Costs as Grouped