Product VS Period Costs – Answer Key
Identify the following as either a product (Inventoriable) Cost or a Period Cost.
Product
(Inventoriable)
Cost
1. The cost of the memory chips used in the
product
2. Factory equipment maintenance costs
3. The cost of the wire that is used in the product
4. Wages and salaries of factory security
personnel
5. Wages and salaries in the department that
handles billing customers
6. Telephone expenses incurred by factory
management
7. The wages of workers who assemble the
product
8. Heath insurance premiums for factory
personnel
9. Factory heating costs
9
9
9
9
9
9
9
9
9
10. Training costs for new administrative
employees
11. The travel costs of the company's
salespersons
9
9
9
12. The cost of air-conditioning executive offices
13. Depreciation on the equipment in the fitness
room used by factory workers
14. The costs of shipping completed product to
customers
15. The president's salary
Period
Cost
9
9
9