Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), Kitchen Aid (a manufacturing-sector company), and Hughes Net (a service-sector company):

a. Cost of phones and computers available for sale in Best Buy's electronics department

b. Electricity used to provide lighting for assembly-line workers at a Kitchen Aid manufacturing plant

c. Depreciation on Hughes Net satellite equipment used to provide its services

d. Electricity used to provide lighting for Best Buy's store aisles

e. Wages for personnel responsible for quality testing of the Kitchen Aid products during the assembly process

f. Salaries of Best Buy's marketing personnel planning local-newspaper advertising campaigns

g. Perrier mineral water purchased by Hughes Net for consumption by its software engineers

h. Salaries of Hughes Net area sales managers

i. Depreciation on vehicles used to transport Kitchen Aid products to retail stores

Required

1. Distinguish between manufacturing-, merchandising-, and service-sector companies.

2. Distinguish between inventoriable costs and period costs.

3. Classify each of the cost items (a-i) as an inventoriable cost or a period cost. Explain your answers.