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This post addresses a practice problem for types of cost.

In the Mattel factory they are spending hours upon hours making the new action figures for the upcoming film MATRIX IV-THE RISE OF NEO. In this process they are using tons of raw plastic to make the many different action figures needed to coincide with the film's anticipated debut. The cost of this raw plastic is not considered to be...
Answer
A. a period cost
B. a product cost
C. a variable cost
D. a prime cost

Solution Summary

The solution provides the correct answer and explanation for the following accounting multiple choice question:

In the Mattel factory they are spending hours upon hours making the new action figures for the upcoming film MATRIX IV-THE RISE OF NEO. In this process they are using tons of raw plastic to make the many different action figures needed to coincide with the film's anticipated debut. The cost of this raw plastic is not considered to be...

$2.19