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Maizie works in the accounting department of a small manufacturing facility. They are trying to determine which costs are period costs and which are product
Maizie works in the accounting department of a small manufacturing facility. They are trying to determine which costs are period
costs and which are product costs. They have the following information:
Rent Expense $
Payroll $
Depreciation $
Repairs $
Utilities $
What additional information if any will Maizie need to properly account for these costs?
They have enough information as these are all period costs, with the exception of payroll.
They will need to find out how much of the payroll relates to manufacturing, but otherwise has enough information.
They will need to know which costs are related to manufacturing and which are related to administrative areas of the
business.
They have enough information to properly classify these costs as they are all considered period costs.
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