Chapter 2 Solutions, 1st Day

Chapter 2 Solutions, 1st Day - Chapter 2 Solutions, 1st Day

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2 Solutions, 1 st Day Problem 2-13  (30 minutes) Note to the Instructor: There may be some exceptions to the answers below. The purpose of this  problem is to get the student to start  thinking  about cost behavior and cost purposes; try to avoid lengthy  discussions about how a particular cost is classified. Variable  or Selling Administrative Manufacturing (Product) Cost Cost Item Fixed Cost Cost Direct Indirect 1. Property taxes, factory. ................................. F X 2. Boxes used for packaging detergent  produced by the company. ......................... V X 3. Salespersons’ commissions. ......................... V X 4. Supervisor’s salary, factory. .......................... F X 5. Depreciation, executive autos. ...................... F X 6. Wages of workers assembling computers. ... V X 7. Insurance, finished goods warehouses. ........ F X 8. Lubricants for production equipment. ............ V X 9. Advertising costs. .......................................... F X 10. Microchips used in producing calculators. .... V X 11. Shipping costs on merchandise sold. ............ V X 12. Magazine subscriptions, factory lunchroom. . F X 13. Thread in a garment factory. ......................... V X 14. Billing costs. .................................................. V X* 15. Executive life insurance. ............................... F X
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Problem 2-13  (continued) Variable  or Selling Administrative Manufacturing (Product) Cost Cost Item Fixed Cost Cost Direct Indirect 16. Ink used in textbook production. ................... V X 17. Fringe benefits, assembly-line workers. ........ V X** 18. Yarn used in sweater production. .................. V X 19. Wages of receptionist, executive offices. ...... F X   * Could be administrative cost. ** Could be indirect cost.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

Page1 / 8

Chapter 2 Solutions, 1st Day - Chapter 2 Solutions, 1st Day

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online