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3 years ago

LO 4.1Why are product costs assigned to the product and period costs immediately expensed?

Business

1 answer:

Levart [38]3 years ago

3 0

Answer:

Explanation:

The product cost is the cost that is related to the product.

Product cost = Direct materials used + Direct labor + manufacturing overhead

And, the period cost is that cost which is incurred according to the time. It covered mainly selling and administrative expenses section

The computation of the period cost is shown below:

= Sales salaries expense + Depreciation on delivery trucks + Repairs to office equipment + Advertising expense + Office supplies used

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makkiz [27]

Answer:

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3 years ago

Adamson, Inc. has the following cost data for Product X: Direct materials Direct labor Variable manufacturing overhead Fixed man

stepan [7]

Answer and Explanation:

The computation of the unit product cost using absorption costing and variable costing is shown below

Under absorption costing

Particulars 2,000 units 2,500 units 5,000 units

Direct materials per unit $41 $41 $41

Direct labor per unit $57 $57 $57

Variable manufacturing

overhead per unit $7 $7 $7

Fixed manufacturing

overhead per unit $10 $8 $4

($20,000 ÷ 2,000 units) ($20,000 ÷ 2,500 units) ($20,000 ÷ 5,000 units)

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Under variable costing

Particulars 2,000 units 2,500 units 5,000 units

Direct materials per unit $41 $41 $41

Direct labor per unit $57 $57 $57

Variable manufacturing

overhead per unit $7 $7 $7

Unit product cost $105 $105 $105

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3 years ago

Verbal orders by telephone or in person are discouraged. In cases where verbal orders are necessary, which of the following is t

oksano4ka [1.4K]

Answer:

The person receiving the order should read it back to ensure that the order is correct.

Explanation:

In business communication the best way to communicate orders is in written form since this allows for clear conveyance of the message in the order. Using verbal means to give orders over the phone is prone to misinterpretation and there is less accountability when the subordinate claims he did not understand the order.

To curtail this it is advisable for the recipient of the order to repeat the order. This shows it has been clearly understood.

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