1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yuradex [85]
3 years ago
14

ndicate whether each of the following costs should be classified as a product cost or as an SG&A cost in accordance with GAA

P: Direct materials used in a manufacturing company. Indirect materials used in a manufacturing company. Salaries of employees working in the accounting department. Commissions paid to sales staff. Interest on the mortgage for the company’s corporate headquarters. Indirect labor used to manufacture inventory. Attorney’s fees paid to protect the company from frivolous lawsuits. Research and development costs incurred to create new drugs for a pharmaceutical company. The cost of secretarial supplies used in a doctor’s office. Depreciation on the office furniture of the company president.
Business
1 answer:
Leokris [45]3 years ago
4 0

Answer:

 

Explanation:

The product cost is a combination of direct material cost, direct labor cost, and the manufacturing overhead cost. The manufacturing overhead cost is an indirect cost which is related to the factory expenses.

And, the SG&A cost is a sales, general ,and admin costs incurred to advertise the company's products so that it can accomplish its sales targets which can build a good reputation in the market.

So, the categorization is shown below:

Direct materials used in a manufacturing company. = Product cost

Indirect materials used in a manufacturing company. = Product cost

Salaries of employees working in the accounting department. = sales, general ,and admin costs

Commissions paid to sales staff. = sales, general ,and admin costs

Interest on the mortgage for the company’s corporate headquarters. = sales, general ,and admin costs

Indirect labor used to manufacture inventory. = Product cost

Attorney’s fees paid to protect the company from frivolous law suits. = sales, general ,and admin costs

Research and development costs incurred to create new drugs for a pharmaceutical company. = sales, general ,and admin costs

The cost of secretarial supplies used in a doctor’s office. = sales, general ,and admin costs

Depreciation on the office furniture of the company president. = sales, general ,and admin costs

You might be interested in
According to financial planners, the average retiree requires approximately 70% of their last year’s working salary (answer to #
Anna35 [415]

Answer:

Our answer is 2430798.798

Explanation:

. 70% of pre-retirement salary should be equal to the interest that we get from savings(5% of savings).

Therefore, 0.7 × 173628.4856 = 0.05×savings

==> savings = 2430798.798

3 0
3 years ago
Suppose a merchant in a moneyless economy trade has goods for large amount of purple fabric. He intended to use the fabric to tr
spayn [35]

Answer:

Preservation of value.

Explanation:

Money is a medium of exchange that is generally acceptable for transactional purposes.

As seen in the scenario , money may not necessarily be cash as some other items can be used as a medium of exchange in a trade by barter agreement so far the items has the features of money and acceptable.

However , one thing that could be pointed out in the transaction in the scenario is a loss of value of the purple fabrics before the transaction could take place as a result of sudden arrival of a trade ship that caused a surplus in the fabrics , and at the end , it could not achieve as much as was expected.

Therefore the need for the preservation of value of money is necessary and needed

4 0
3 years ago
Read 2 more answers
e payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing
Harman [31]

Answer:

Invest

invest

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing

firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.

Thus the option that would yield the highest payoff is for both firms to advertise.

this is an example of prisoners dilemma

7 0
2 years ago
A formula that calculates the total dollar value of all goods and services produced in a nation and all the goods and services p
Lina20 [59]

Answer:

Gross National Product (GNP)

Explanation:

According to Investopedia, "the Gross National Product is the value of a nation's finished domestic goods and services during a specific time period".

*Note that the GNP should NOT be confused with the GDP (Gross Domestic Product). The GDP only accounts for the value of goods and services produced within a nation's borders, while the GNP also adds the value of services produced by that country's employees and companies in other nations.

7 0
3 years ago
The fundamental economic problem is meeting people’s virtually unlimited needs and wants with limited resources.Question 3 optio
Solnce55 [7]

Answer:

The correct answer is: True.

Explanation:

The basic or fundamental problem in economics is people have unlimited wants and needs and the resources are limited. These limited resources have alternative uses and are used to satisfy unlimited wants and needs.

These resources are to be used rationally in such a way that total utility or consumption derived is maximized.

7 0
3 years ago
Other questions:
  • Book Bound sells a wide variety of books to retail bookstores. Book Bound recently published two new books: a popular mystery no
    14·1 answer
  • Lower inventory levels Group of answer choices make processes less dependent on each other while revealing bottlenecks more quic
    11·1 answer
  • You find a fossil, and through careful study you find that only one-sixteenth of the carbon-14 that it once contained is still r
    7·1 answer
  • Are outstanding credit card balances counted as part of the money supply?
    7·1 answer
  • For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acqu
    5·1 answer
  • Determine the profit-maximizingLOADING... prices when a firm faces two markets where the inverse demand curves are Market​ A: p
    9·1 answer
  • Freeman Co. acquired another business and paid (among other amounts) $64,800 for its goodwill in 2018. On December 31, 2020, the
    9·1 answer
  • For Accounting, I need help knowing how to journalize the following transaction:
    6·1 answer
  • The Tucana Bank of Commerce pools customer deposits and uses the
    13·1 answer
  • When a firm invests directly in a business or venture in another country, it is called ______.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!