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    3 Questions on Costs and depreciation

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    1. Indirect labor is a part of:
    prime cost,
    conversion cost,
    period cost,
    or nonmanufacturing cost?

    2. Fixed costs expressed on a per unit basis:
    will increase with increases in activity,
    will decrease with increases in activity,
    are not affected by activity,
    or should be ignored in making decisions since they cannot change?

    3. Depreciation on a personal computer used in the marketing department of a manufacturing firm would be classified as:
    a product cost that is fixed with respect to the company's output,
    a period cost that is fixed with respect to the company's output,
    a product cost that is variable with respect to the company's output,
    or a period cost that is fixed with respect to the company's output?

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    https://brainmass.com/business/management-accounting/3-questions-on-costs-and-depreciation-84681

    Solution Preview

    1. Indirect labor is a part of: prime cost, conversion cost, period cost, or non manufacturing cost?

    Indirect labor is a part of Non Manufacturing cost.
    2. Fixed costs expressed on a per unit basis: will increase with increases in activity, will decrease with increases ...

    Solution Summary

    This posting contains short answers to following questions.

    $2.19

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