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Indicate Whether Each of the Following Is a Product Cost

Question 101

Essay

Indicate whether each of the following is a product cost or a period cost:
(a)Electricity for lighting a factory building.
(b)Costs of delivering finished bicycles to dealers.
(c)Cost of a store detective in a retail establishment.
(d)Cost of eggs in a bakery.
(e)Cost of chocolate to a candy manufacturer.
(f)Salary of injection molding machine operator in a plastics factory.
(g)Salary of a sewing machine operator in a clothing factory.
(h)Depreciation of a freezer in an ice cream plant.

Correct Answer:

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(a)Product
(b)Period...

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