🎯Product Cost Vs Period Cost: 14 MCQs

All of the following would be a period cost except:

Cost of electricity for production equipment is classified as:

Choose one example of a period cost for a company in the fashion industry.

Which of the following statements is true regarding Product costs?

The fixed portion of electricity cost in a manufacturing facility is classified as:

Delta Corporation paid in advance for its four years of insurance coverage. The total premium was $3,500 for four years and was paid at the beginning of the first year. 65% of the premium applies to manufacturing operations and 35% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?​

Paul Corporation’s relevant range of activity is 4,000 units to 9,000 units. When it produces and sells 7,000 units, its average costs per unit are as follows:​

What will be the total amount of period costs incurred to sell 7,000 units?

Nestle Corporation has recorded the following information:​

How much is the total amount of product costs incurred to produce 6,000 units?

Hershey Corporation’s relevant range of activity is 4,000 units to 8,000 units. its average costs per unit to produce and sell 6,000 units are as follows:​

For financial reporting purposes, the total amount of period costs incurred to sell 6,000 units is closest to:

Pantaloon Corporation has provided the following information:​

For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Caster Corporation has provided the following information:​

For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to:

A partial listing of costs incurred at Sipchem Corporation during June appears below:

The total of the product costs listed above for June is:

Bently corporation has reported the partial listing of costs for the month of June as shown below:

What are the total period costs for June?

Chic Corporation, a merchandising company, has a relevant range of activity from 4,000 units to 8,000 units. Its average costs per unit to produce and sell 6,000 units are shown below:

The total amount of product costs incurred to make 6,000 units is closest to: