Classification of costs as Product or Period Cost:

Product Cost

Period Cost

1

Depreciation on salespersons' cars

2

Rent on equipment used in the factory

3

Lubricants used for machine maintenance

4

Factory supervisors' salaries

5

Heat, water, and power consumed in the factory

6

Advertising costs

7

Workers' compensation insurance for factory employees

8

Depreciation on chairs and tables in the factory lunchroom

9

The wages of the receptionist in the administrative offices

10

Cost of leasing the corporate jet used by the company's executives