Question
Brand Handcock, the owner of the Dallas Manufacturing Co., is concerned that the company's profitability has worsened. He asks you (His accountant) to examine the
Brand Handcock, the owner of the Dallas Manufacturing Co., is concerned that the company's profitability has worsened. He asks you (His accountant) to examine the books and answer some questions. You notice the company's period costs include:
Toilet paper costs at the factory, $9,000
Insurance on the company's headquarters, $11,000
Depreciation of factory lunchroom facilities, $7,000
Question 1:How should the company record each item?
Question 2:What impact will each item have on the company's profitability?
*Respond like you are talking to a client*
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