Inventoriable costs versus period costs. Each of the following cost items pertains to one of the following companies: Toyota (a manufacturing-sector company), Sobeys (a merchandising-

sector company), and Google (a service-sector company): _

a. Spring water purchased by Sobeys for sale to its customers

b. Electricity used to provide lighting for assembly-line workers at a Toyota truck-assembly plant

c. Amortization on computer equipment at Google used to update directories of websites.

d. Electricity used to provide lighting for Sobeys store aisles

e. Amortization on computer equipment at Toyota used for quality testing of truck components during the assembly process

f. Salaries of Sobeys marketing personnel planning local newspaper advertising campaigns g. Spring water purchased by Google for consumption by its software engineers h. Salaries of Google marketing personnel selling banner advertising REQUIRED 1. Distinguish among manufacturing-sector, merchandising-sector, and_ service-sector companies. Which of these have inventories of goods for sale?

2. Distinguish between inventoriable costs and period costs.

3. Classify each of the

(a) to (h) cost items as an inventoriable cost or a period cost. Explain your answers.

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