Which of the following is a non value-added activity?

Select one:

a. Product design

b. Customer service

c.

Rework of defective items

Which of the following activities would not be considered a value-added activity

Select one:

a. Accounting

b. Production

c. Marketing

Which of the following accounts would be a period cost rather than a product cost?

Select one:

a. Freight out

b. Maintenance on factory machines

c. Depreciation on manufacturing machinery

For a manufacturing company, which of the following is an example of a period cost rather than a product cost?

Select one:

a. Salaries of machine operators

b. Insurance on factory equipment

c. Wages of salespersons

A company which manufactures custom-made machinery routinely incurs sizable telephone costs in the process of taking sales orders from customers. Which of the following is a proper classification of this cost?

Select one:

a.

Period cost

b. Conversion cost

c. Product cost

A company had beginning inventories as follows: Direct Materials, $300; Work-in-Process, $500; Finished Goods, $700. It had ending inventories as follows: Direct Materials, $400; Work-in-Process, $600; Finished Goods, $800. Material Purchases (net including freight) were $1,400, Direct Labor $1,500, and Manufacturing Overhead $1,600. What is the Cost of Goods Sold for the period?

Select one:

a. $4,200

b. $4,100

c. $4,300