Management uses different costs for different purposes in decision making. Included in the different costs are product costs, period costs, variable costs and fixed costs.

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(a) As a manager, choose the concept of cost mentioned above that best describes the cost involved in each of the following situations. i. Depreciation for printing equipment used for this book is a on the income statement. It is a behaviour. The paper used to produce this textbook is a statement. It is also a ii. iii. iv. A V. vi. cost cost in terms of cost cost on the income cost in terms of cost behaviour. A commission is paid to the sales representative who sold this book is a cost on the income statement. cost could be called an inventoriable cost because this type of cost is treated as an asset on the balance sheet unless the related item is sold. The costs of operating a service department are classified as. costs as far as the products produced are concerned. Depreciation for the delivery vehicle used by the sales representative is a cost on the income statement. In terms of cost behaviour, it is a