reat some information in a report he was preparing so he discussed it with his triend. Is ABC's accountant Defend your answer. adhering to the ethical standards of management accountants? EXERCISES: SET A Cost Recognition LO 2 E1A. CONCEPT Indicate whether each of the following costs for a moped manufac turer is a product or a value-addi vu adding cost. and, ifit is a prodct cost, a direct or an indirect cost or m period cost, a variable or a fixed cost, a value-adding or a non ng cos Cost Recognition Classifications Direct or Indirect Value-Adding or Non-Value-Adding Value-adding Product or Period Variable or Fixed Item Direct Example: Motor Product Variable a. Office rent b. Labor to assemble moped c. Labor to inspect moped d. Accountant's salary e. Lubricant for brakes