The President of Sales at the company you work for makes $500,000 annually. He spends several...

 

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The President of Sales at the company you work for makes $500,000 annually. He spends several days negotiating a deal for your company, where you will be the exclusive manufacturer for a specific part that an automotive company requires. The machine used to manufacture this part will require 1 hour of downtime and two employees to configure the machine before each run. The materials required for manufacturing this part are the same materials used for other parts made by your company and are in stock at the factory. As the part is manufactured, it will need to be wrapped and packed for shipping. Prior to shipping, a Quality Inspector will check 2% of the parts from each run. Identify which costs are product costs (which costs contribute to COGS) and which costs are period costs. Cost: The President of Sales' salary [Select] Assistant to the President of Sales' salary [Select] Machine configuration labor [Select] Materials for manufacturing the part [Select] Materials for packing and shipping the part [Select] Packing and shipping labor [Select] Quality Inspector salary [Select] Manufacturing plant utilities [Select] Headquarter's internet and phone bill [Select] The President of Sales at the company you work for makes $500,000 annually. He spends several days negotiating a deal for your company, where you will be the exclusive manufacturer for a specific part that an automotive company requires. The machine used to manufacture this part will require 1 hour of downtime and two employees to configure the machine before each run. The materials required for manufacturing this part are the same materials used for other parts made by your company and are in stock at the factory. As the part is manufactured, it will need to be wrapped and packed for shipping. Prior to shipping, a Quality Inspector will check 2% of the parts from each run. Identify which costs are product costs (which costs contribute to COGS) and which costs are period costs. Cost: The President of Sales' salary [Select] Assistant to the President of Sales' salary [Select] Machine configuration labor [Select] Materials for manufacturing the part [Select] Materials for packing and shipping the part [Select] Packing and shipping labor [Select] Quality Inspector salary [Select] Manufacturing plant utilities [Select] Headquarter's internet and phone bill [Select]

Answer rating: 100% (QA)

Answer Product costs are those costs directly associated with the production of goods while period c... View the full answer