Review Problems for Cost Classification

1.

The cost of leather used in the production of womens

shoes.

2.

Maintenance costs for painting equipment in a car

factory.

3.

The VP of HRs annual salary.

4.

Rent on the manufacturing facility.

5.

Depreciation on a tradeshow booth.

6.

Salary of a labourer hired to sew soles to shoes.

7.

Telephone charges of the CEOs assistant.

8.

Cost of paper required to print coupons to be mailed to

customers.

9.

Rent on the head office building.

10.

Shipping charges for goods shipped to customers.

11.

Cost of an abstract painting for the head office

cafeteria.

12.

The cost of a 30-second Superbowl Ad

Categorize by:

1 type of cost?

2 Product or Period Cost/

3 What is the underlying cost behavior Fixed or

Variable?