Cost Classification (Assignment #1) Her first action plan was to list all the key products or items that she would need to start the business. Keishas list1 included a conventional oven, a cash register, baking pans, business licenses, health inspections, flour, sugar, baking soda, raisins, butter, eggs and rum. She also planned on hiring her accounting professor on a part time basis to perform bookkeeping services and her nieces Brianna and Alexis, to help her in the bakery. Aunt Sue Ellen would supervise the girls so that Keisha could focus on developing the business. K&Js cost drivers are provided in Table 1. Required: Keisha needs your help in classifying the various costs. In order to manage these costs, she wants them identified using the information below. She asked that you use Table 2 for your answers. a) Behavior (fixed or variable) b) Traceability (direct or indirect) c) Financial reporting (product or period) d) If product cost, identify which items are direct materials, direct labor or manufacturing overhead.

Step 4: If Product, what type? Step 1: Step 2: Step 3: DL MOH Fixed Variable Direct Indirect Period ProductDM