Question
A newly hired accountant of Water Edge Hotel wants to better understand how costs are classified for the hotel. By examining the accounting records, the
A newly hired accountant of Water Edge Hotel wants to better understand how costs are classified for the hotel.
By examining the accounting records, the following costs were identified.
Assume that the cost object are the meals served at the hotel's restaurant.
Match the individual costs to the cost classifications.
Cost of licensing software to manage room reservations at the hotel. Cost of beverages and liquor served at the restaurant |
Cost of advertising campaign for the restaurant on the radio.
Cost of wages of head chef and a pastry chef
1. | Product Cost - Direct Materials |
2. Product Cost - Direct Labor Salary of the hotel manager. > 3. Product Cost - Overhead > Cost of discount coupons to promote the restaurant to hotel patrons. 4. Period Cost - Sales & Marketing 5. Period Cost - Administrative Cost of wages earned by table servers. > Depreciation on kitchen appliances and equipment. > Wages of workers who do maintenance and repairs to the restaurant's dishwashers.
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