Main Content

Lesson 1: Course Orientation and Defining Managerial Accounting

Self-Check

Determining Costs Self-Check

Is the following a product or period cost? If it is a product cost, is it direct materials, direct labor or factory overhead?

To add more than one answer to a category, separate letters with a comma and no spaces. Example: (a),(d)

 

  • (a) Clothing used to make a desk chair
  • (b) Depreciation of a factory building
  • (c) Depreciation of an office building
  • (d) Salary of a factory supervisor
  • (e) Salary of company CEO
  • (f) Time spent by employee sewing cloth to a desk chair





    2.  
  2.  
  3.  





    5.  
  5.  
  6.  





    8.  
  8.  
  9.  

 

 

 

Solution
Period Cost
Salary of company CEO
Depreciation of an office building
Product Cost: Direct Materials
Clothing used to make a desk chair
Product Cost: Direct Labor
Time spent by employee sewing cloth to a desk chair
Product Cost: Factory Overhead
Depreciation of a factory building
Salary of a factory supervisor

Top of page