Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Distinguish between manufacturing-, merchandising-, and service-sector companies. 2. Distinguish between inventoriable costs and period costs. 3. Classify each of the cost items (a h)

1. Distinguish between manufacturing-, merchandising-, and service-sector companies.

2. Distinguish between inventoriable costs and period costs.

3. Classify each of the cost items (a h) as an inventoriable cost or a period cost. Explain your answers.

Each of the following cost items pertains to one of these companies: Star Market (a merchandising- sector company), Maytag (a manufacturing-sector company), and Yahoo! (a service-sector company):

a. Cost of lettuce and tomatoes on sale in Star Markets produce department

b. Electricity used to provide lighting for assembly- line workers at a Maytag refrigerator- assembly plant c. Depreciation on Yahoo! s computer equipment used to update its Web site

d. Electricity used to provide lighting for Star Markets store aisles

e. Depreciation on Maytags computer equipment used for quality testing of refrigerator components during the assembly process

f. Salaries of Star Markets marketing personnel planning local- newspaper advertising campaigns

g. Perrier mineral water purchased by Yahoo! for consumption by its software engineers

h. Salaries of Yahoo!s marketing personnel selling advertising

i. Depreciation on vehicles used to transport Maytag refrigerators to retail stores

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And GRC Automation In SAP

Authors: Maxim Chuprunov

1st Edition

3642353010, 9783642353017

More Books

Students also viewed these Accounting questions

Question

Explain recruiting technology.

Answered: 1 week ago

Question

Define and operationalize types of employment discrimination.

Answered: 1 week ago

Question

Describe sexual harassment in the global environment.

Answered: 1 week ago