$2-34$ Invemoriable cests versus period casts. Each of the folowing cost items pertains to one of these oompanies. Best firy fa merchandising secior companyh, KitchenAid la manulacturing$-$sector compami. and Hughesket ia service sector cempanyl:

a$.$ Cest of phones and computers available for sale in Best Buys Blectronics department

b$.$ Electricty used to pronde lighting fur assemay$-$fne workers at a KitchenAid manufacturing plant

c$.$ Depreciation on HughesNel satelite equipment used to provide its services

d$.$ Electricity used to provide lighting fur Best Buy s store aisjes

e$.$ Wages for personnel responstble for quality testing of the Kitchinaid products during the assembly process

Saiaries of Best Burys marketing personnel planning local newspaper advertising campaigns

Perrier mineral water purchased by HughesNel for cunsumption by its soltware engineers

t$.$ Salaries of Hughes Net araa sales managers

i$.$ Depreciation an vehicles used to transport KitchenAid products to retail stores

Distinguish between manufacturing: $,$ merchandising; and service sector companies.

Distingush between inventeriable custs and periad costs.

Classify each of the cost iterts $|$a$-$i$)$ as an inventuriable cost ur a period cost Explain your answers.

Problems