Answer:
Product cost are cost incurred in the manufacturing of a product while period cost are cost incurred for a period irrespective of the manufacturing activity.
1. Depreciation on salespersons cars.
Classification: Period cost
2. Rent on equipment used in the factory.
Classification: Product cost
3. Lubricants used for machine maintenance.
Classification: Product cost
4. Salaries of personnel who work in the finished goods warehouse.
Classification: Period cost
5. Soap and paper towels used by factory workers at the end of a shift.
Classification: Product cost
6. Factory supervisors salaries.
Classification: Product cost
7. Heat, water, and power consumed in the factory.
Classification: Product cost
8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)
Classification: Period cost
9. Advertising costs.
Classification: Period cost
10. Workers compensation insurance for factory employees.
Classification: Product cost
11. Depreciation on chairs and tables in the factory lunchroom.
Classification: Product cost
12. The wages of the receptionist in the administrative offices.
Classification: Period cost
13. Cost of leasing the corporate jet used by the company as executives.
Classification: Period cost
14. The cost of renting rooms at a Florida resort for the annual sales conference.
Classification: Period cost
15. The cost of packaging the company as product.
Classification: Product cost
