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Chocolate_Pie Chocolate_Pie
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A month ago
Some companies believe that as long as the sales revenue a customer generates exceeds the cost of goods sold, that the customer is profitable. However, companies incur product costs, selling costs, and administrative costs.

Required:

a.List three items that are classified as product costs.
b.List three items that are classified as selling costs.
c.List three items that are classified as administrative costs.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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rbacon2rbacon2
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A month ago
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More solutions for this book are available here
Answers will vary. Some examples are:
a.Direct material, direct labor, manufacturing overhead. An example of direct material
is wood for furniture. An example of direct labor is assembly line workers' salaries. An example of manufacturing overhead is depreciation on factory equipment.
b.Examples of selling costs include storage of finished goods, delivery or shipping
charges, sales commissions, and depreciation on delivery truck.
c.Examples of administrative costs include the president's salary, depreciation on office
equipment, salary of accounts payable clerks, insurance on home office, and janitorial supplies used in home office.
1

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Chocolate_Pie Author
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A month ago
Thanks
logbi
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Yesterday
Thank you, thank you, thank you!
IvanaVR
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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