Determine whether the following is considered a product or period cost.
A. Salaries of scientists studying ways to speed forest growth.
B. Cost of computer software to track WIP Inventory.
C. Cost of electricity at the paper mill.
D. Salaries of the companys top executives.
E. Cost of chemicals to treat the paper.
F. Cost of tv ads.
G. Depreciation on the manufacturing plant.
H. Cost to purchase wood pulp.
I. Life Insurance on the CEO.
2. Match the following terms to the appropriate statement. Some terms may be used more than once or some terms may not be used at all. Choose from; Budget, creditors, controlling, financial, managerial, managers, planning, stockholders.
A. Accounting systems that must follow GAAP.
B. External parties for whom financial accounting reports are prepared.
C. The role managers play when they are comparing the companys actual results with the planned results.
D. Internal decision makers.
E. Accounting system that provides information on a companys past performance.
F. Accounting system not restricted by GAAP but chosen by comparing the costs versus the benefit of the system.
G. The management function that involves choosing goals and the means to achieve them.