Exercise 1-2A Identifying product versus selling, general, and administrative (SG&A) costs

A. Direct materials used in a manufacturing company

B. Indirect materials used in a manufacturing company.

C. Salaries of employees working in the accounting department

D. Commissions paid to sales staff.

E. Interest on the mortgage for the companys corporate headquarters

F. Indirect labor used to manufacture inventory.

G. Attorneys fees paid to protect the company from frivolous lawsuits.

H. Research and development costs incurred to create new drugs for a pharmaceutical company.

I. The cost of secretarial supplies used in a doctors office.

J. Deprecation on the office furniture of the company president.