Accounting II Chapter 2 Quiz.docx

Accounting II Chapter 2 Quiz.docx - Assume a grocery store...

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Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department? (Identify each cost as either "Direct" or "Indirect" in regards to the Produce Department.) 1. Direct Indirect Wages of checkout clerks 2. Direct Indirect Wages for workers in the Produce Department 3. Direct Indirect Depreciation on refrigerated produce display cases 4. Direct Indirect Cost of weekly advertisements in local newspaper 5. Direct Indirect Cost of bananas, lettuce, and other produce 6. Direct Indirect Baggies and twist ties available for shoppers in the Produce Department 7. Direct Indirect Monthly lease payment for grocery store retail location 8. Direct Indirect Cost of scales hanging in the Produce Department Which of the following costs are treated as product costs by a merchandising company , such as Walmart? Which costs are treated as period costs? 1. Period cost Product cost Cost of leasing the retail locations 2. Period cost Product cost Cost of manager's and sales associates' salaries 3.
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Period cost Product cost Cost of merchandise purchased for resale 4. Period cost Product cost Cost of designing and operating the company's website 5. Period cost Product cost Cost of shipping merchandise to the store 6. Period cost Product cost Cost of providing free shipping to customers who buy product online 7.
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  • Spring '15
  • Wilkins
  • Accounting, Produce Department

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