Googlehasnoinventoryofgoodsforsaleandhencenoinventoria

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Unformatted text preview: ostoftruckfinishedgood. Salaries of Sobeys marketing personnel—period cost of a merchandising company.Itisacostthatisnottraceabletogoodspurchasedforresale.Itis presumednottobenefitfutureperiods(oratleastnottohavesufficiently reliableevidencetoestimatesuchfuturebenefits). WaterconsumedbyGoogle’sengineers—periodcostofaservicecompany. Googlehasnoinventoryofgoodsforsaleand,hence,noinventoriablecost. Salaries of Google’s marketing personnel—period cost of a service company. Google has no inventory of goods for sale and, hence, no inventoriablecost.  2 ­‑17 (15 ­‑20min.) Classificationofcosts,merchandisingsector.  Costobject:  DVDsectionofstore Costvariability: WithrespecttochangesinthenumberofDVDssold  There may be some debate over classifications of individual items. Debate about costvariabilityismorelikely.  CostItem DorI VorF A D F B I V C D V D I F E I F F I VorF G I F H D V 2 ­‑19 (10min.)...
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