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Important information about Classification of Manufacturing Costs
Classify the costs as (1) product or period; (2) variable or fixed; and (3) for those that are product costs, as direct materials, direct labor, or manufacturing overhead.
The following are costs associated with manufacturing firms, merchandising firms, or service firms:
a. Miscellaneous materials used in productionb. Salesperson's commission in a real estate firmc. Administrators' salaries for a furniture wholesalerd. Administrators' salaries for a furniture manufacturere. Freight costs associated with acquiring inventories for a grocery storef. Office manager's salary in a doctor's officeg. Utilities for the corporate offices of a toy manufacturerh. Line supervisor's salary for a clothing manufacturing firmi. Training seminar for sales staff of a service firmj. Fuel used in a trucking firmk. Paper used at a printing businessl. Oil for machinery at a plastics manufacturing firmm. Food used at a restaurantn. Windshields used for a car manufacturer
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