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    Cost Classification-manufacturing,merchandising,service

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    The following are costs associated with manufacturing firms, merchandising firms, or service firms:
    a. Miscellaneous materials used in production
    b. Salesperson's commission in a real estate firm
    c. Administrator's salaries for a furniture wholesaler
    d. Administrator's salaries for a furniture manufacturer
    e. freight costs associated with acquiring inventories for a grocery store
    f. Office manager's salary in a doctor's office
    g. Utilities for the corporate offices of a toy manufacturer
    h. Line supervisor's salary for a clothing manufacturing firm
    i. Training seminar for sales staff of a service firm
    j. Fuel used in a trucking firm
    k. Paper used at a printing business
    l. Oil for a machinery at a plastics manufacturing firm
    m. Food used at a restaurant
    n. Windshields used for a car manufacturer

    Classify the costs as (1) product or period; (2)variable or fixed; and (3) for those that are product costs, as direct materials, direct labor, or manufacturing overhead. Write 'not applicable (N/A)' if a category doesn't apply.

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    Solution Preview

    Cost Classification
    The following are costs associated with manufacturing firms, merchandising firms, or service firms:
    a. Miscellaneous materials used in production
    b. Salesperson's commission in a real estate firm
    c. Administrator's salaries for a furniture wholesaler
    d. Administrator's salaries for a furniture manufacturer
    e. Freight costs associated with acquiring inventories for a grocery store
    f. Office manager's salary in a doctor's office
    g. Utilities for the corporate offices of a toy manufacturer
    h. Line supervisor's salary ...

    Solution Summary

    This solution is comprised of classifying the costs as (1) product or period; (2)variable or fixed; and (3) for those that are product costs, as direct materials, direct labor, or manufacturing overhead for manufacturing firms, merchandising firms, or service firms.

    $2.49

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