PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the
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In 2011, PEZ Candy Inc. opened a 6,000-square-foot Visitors Center in Connecticut. The Visitors Center houses the world's largest collection of PEZ memorabilia on public display. Visitors can also view the factory through special viewing windows. The center also has a touch-screen PEZ trivia game and interactive reviews of PEZ history. Birthday party packages are also offered in the Visitors Center; partygoers receive goodie bags that include a blank customizable PEZ dispenser, PEZ candy, a PEZ lanyard, and discount coupons.
Requirements
1. Is the cost of sugar in PEZ candies a product or a period cost? What about the wrappers that the candy is packaged in?
2. Is the cost of quality control testing in the manufacturing process for PEZ candies a product or a period cost?
3. Is the cost of the labor to make PEZ candy in the factory a product or a period cost? What about the cost of the benefits (i.e., health care, payroll taxes, vacation pay) for those workers?
4. Is the cost of staffing the PEZ Visitors Center a product or a period cost? What about the cost of the benefits (i.e., health care, payroll taxes, vacation pay) for those workers who work in the Visitors Center?
5. Assume that PEZ purchased the touch-screen PEZ trivia game from a custom video game developer. Is the cost of that game a product or a period cost? What about the costs of maintaining and updating the software and hardware for the game?
6. Is food cost for a birthday party in the PEZ Visitors Center a product or a period cost? What about the cost of the items included in the goodie bags?
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