Product costs and period


Indicate whether each of the following should be considered a product cost or a period cost. If you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For example, the answer to item 0 is "indirect product cost." Begin with item a.

0. Property taxes on factory building.

a. Cost of disposal of hazardous waste materials to a chemical plant.

b. Amounts paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home.

c. Depreciation on sales showroom fixtures.

d. Salaries of security guards in an administrative office building.

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Accounting Basics: Product costs and period
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