Identification/Problems (Points as Noted)
Consider the following items: A. Tomatoes used in the manufacture of ketchup B. Administrative salaries of executives employed by a regional airline C. Wages of assembly-line workers at an automobile manufacturing plant D. Marketing expenditures of the major league baseball club E. Commissions paid to the salespeople working for a soft drink company F. Straight-line depreciation on manufacturing equipment owned by a computer manufacturer G. Shipping charges incurred by office supplies retailer on out-going orders H. Speakers used in a consumer electronics company’s home-theater systems I. Insurance costs related to a cosmetics manufacturing plant
Required: Complete the table that follows and classify each of the costs listed as (1) a product or period cost and (2) a variable or fixed cost by placing an “X” in the appropriate column. (18 points)