FREE Trial

Classifying costs: product or period / asset or expense Required Use the following format to classify each

Question:

Classifying costs: product or period / asset or expense

Required

Use the following format to classify each cost as a product cost or a selling, general, and administrative (SG&A) cost. Also indicate whether the cost would be recorded as an asset or an expense. The first cost item is shown as an example.


Product/ Asset/ Expense Cost Category SG&A Supplies used in the plant manager's office Product Asset Purchase of compute
Transcribed Image Text:

Product/ Asset/ Expense Cost Category SG&A Supplies used in the plant manager's office Product Asset Purchase of computers for the accounting department Depreciation on computers used in factory Natural gas used in the factory Cost of television commercials Wages of factory workers Paper and ink cartridges used in the cashier's office Raw material used to make products Lubricant used to maintain factory equipment Cost of a delivery truck Cash dividend to stockholders Cost of merchandise shipped to customers Depreciation on vehicles used by salespeople Wages of administrative building security guards

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 58% (12 reviews)

Cost Category Product SGA Asset Expense Supplies used in the plant managers ...View the full answer


answer-question-section
Answered By
tutor-profile-image
Hillary Waliaulah
As a tutor, I am that experienced with over 5 years. With this, I am capable of handling a variety of subjects.
5.00+ 17+ Reviews 30+ Question Solved
Related Book For  book-img-for-question
Fundamental Managerial Accounting Concepts

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

Question Posted:
See More Questions

Related Video

Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.

Students also viewed these Managerial Accounting questions

Statistical Analysis In Criminal Justice And Criminology A Users Guide 1st Edition - ISBN: 0130208221 - Free Book