Consider the following costs incurred during the current year

1. Depreciation of delivery vehicles

2. Depreciation of factory machine

3. Salary of general manager

4. Wages of factory staff

5. Machine maintenance costs

6. Plastics for pens

7. Advertising cost

8. Salary of accountant at factory

9. Electricity bill for the residential quarters

10. Insurance on plant and building

Required: Prepare an answer sheet with column headings as shown below

Evaluate each of the preceding cost items and determine whether the cost is a product cost or period cost, a variable or fixed cost, and for the product cost only, whether the cost is a direct material, direct labor, or overhead

Consider the following costs incurred during the current year 1. Depreciation of delivery vehicles 2. Depreciation of factory machine 3. Salary of general manager 4. Wages of factory staff 5. Machine maintenance costs 6. Plastics for pens 7. Advertising cost 8. Salary of accountant at factory 9. Electricity bill for the residential quarters 10. Insurance on plant and building Required: Prepare an answer sheet with column headings as shown below No Items Classification Cost Behaviour For Product Cost Product Period Variable Fixed Direct Direct Overhead Cost Cost Material Labor Evaluate each of the preceding cost items and determine whether the cost is a product cost or period cost, a variable or fixed cost, and for the product cost only, whether the cost is a direct material, direct labor, or overhead