ACC Exam 4 Final Exam

ACC Exam 4 Final Exam Which of the following buzzwords should tip you off that you're dealing with product costs? Correct answer- Production Yass! Okay this is just of a couple to keep an eye out for. Works like production, factory, plant, and manufacturing ALL suggest you're dealing with a product cost so keep an eye out. General, Sales, and Administration (also affectionately referred to as GSA) refer to period costs Which of the following is NOT a product cost? Correct answer- Administrative Expenses Bingo! Right so the last question prepped you on what to look out for as far as 'product' and 'period' costs were concerned. GSA costs are 'period' costs, so they can't be product costs. Additionally the three buckets that comprise product costs are Direct Labor (DL), Direct Materials (DM), and Manufacturing Overhead (OH). Which of the following should tip you off that you're dealing with period costs? Correct answer- Salaries of Sales Personnel You got this! The word 'Sales' should have jumped out at you - General, Sales, and Admin (GSA) costs are all period costs. The others all contained Product Cost buzz words - production, factory, and manufacturing. Which of the following are period costs? -Officer's Salaries -Indirect Manufacturing -Labor -Overhead -Advertising -GSA Depreciation -Sales Commissions -Plant Depreciation Correct answer- Officer's Salaries Advertising