Each of the following cost items pertains to one of these companies: Home Depot (a merchandising-sector company), Apple (a manufacturing-sector company), and Rent a Nanny (a service-sector company):
A. Cost of lumber and plumbing supplies available for sale at Home Depot
B. Electricity used to provide lighting for assembly-line workers at an Apple manufacturing plant
C. Depreciation on store shelving in Home Depot
D. Mileage paid to nannies traveling to clients for Rent a Nanny
E. Wages for personnel responsible for quality testing of the Apple products during the assembly process
F. Salaries of Rent a Nanny marketing personnel planning local-newspaper advertising campaigns
G. Lunches provided to the nannies for Rent a Nanny
H. Salaries of employees at Apple retail stores
I. Shipping costs for Apple to transport 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.