Question

Can anyone help me understand this? Or point me in the right direction??
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.
The following are costs associated with manufacturing firms, merchandising firms, or service
firms:

Answer 1

a. Miscellaneous materials used in production
b. Salesperson’s commission in a real estate firm
c. Administrators’ salaries for a furniture wholesaler
d. Administrators’ 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 machinery at a plastics manufacturing firm
m. Food used at a restaurant
n. Windshields used for a car manufacturer

Answer 2

Im a little overwhelmed here peeps...

Answer 3

Does this have to with managerial accounting?

Answer 4

Yes it does. Financial Analysis for managers....

Answer 5

This is what I have for the time being. It's been over a year since I ve done this course
a. (1) product (2) variable? (3) Direct Labor
b. (1) period (2) variable (3) N/A
c. (1) period (2) fixed (3) N/A
d. (1) Period (2) fixed (3) Overhead

Answer 6

Miscellaneous materials is part of the asset of the company so it is categorized into Product costs. I would assume miscellaneous materials are a variable cost since the company uses this as part of their manufacturing process. As it is raw material, you can label it under Direct Labor

Answer 7

As for the salesperson's commission within a real estate firm, this would be under period. His salary is based on his/her work performance within a given time period. This would be a variable cost as the total variable cost will change based on his performance.

For (d) I guess you forget about (3) as an administrator's salary is not applicable to the product cost, since his postion is not related to the manufacturing segment of the company

Answer 8

Im making note of all this as you type. :) You are amazing

Answer 9

Just wondering can an administrator be the same as a supervisor under the furniture manufacturer?

Answer 10

as for the freight costs this would be a period cost as it is not directly related the manufacturing or company's service. I dont know to consider this as a variable or fixed cost. Probably fixed cost.

Answer 11

Sorry but I gotta run--literally. Hope this helps out somewhat.

Answer 12

lol, this did help me. A lot. Thank you so much.

Answer 13

can anyone help me with these?
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 machinery at a plastics manufacturing firm
m. Food used at a restaurant
n. Windshields used for a car manufacturer

Answer 14

e. Freight costs associated with acquiring inventories for a grocery store
(1) Product
(2) Variable
(3) Manufacturing overhead cost

f. Office manager’s salary in a doctor’s office
(1) Period
(2) Fixed
(3) N/A

g. Utilities for the corporate offices of a toy manufacturer
(1) Period
(2) Fixed
(3) N/A

h. Line supervisor’s salary for a clothing manufacturing firm
(1) Period
(2) Fixed
(3) N/A

i. Training seminar for sales staff of a service firm
(1) Period
(2) Fixed
(3) N/A

j. Fuel used in a trucking firm
(1) Product
(2) Variable
(3) Direct materials cost

k. Paper used at a printing business
(1) Product
(2) Variable
(3) Direct materials cost

l. Oil for machinery at a plastics manufacturing firm
(1) Product
(2) Variable
(3) Manufacturing overhead cost

m. Food used at a restaurant
(1) Product
(2) Variable
(3) Direct materials cost

n. Windshields used for a car manufacturer
(1) Product
(2) Variable
(3) Direct materials cost

The freight question I am going by the wording, in that it varies with stock level thus variable cost. The Training Seminar for sales staff is ambiguous, in the sense that it does not specify if this firm specialises in sales or this is a sales function within a service firm. I am inclined to think that this is a training for the sales function.

Answer 15

Ummmmmmm Hello! This is amazing. Your my night and shining armor!!