Is the cost of disposing hazardous waste materials resulting from factory operations a product cost or...

Is the cost of disposing hazardous waste materials resulting from factory operations a product cost or a period cost? Explain your statements/arguments.

Expert Solution

A product cost is a cost which includes variable and fixed manufacturing cost. The factory overheads both variable and fixed are part of the product cost. The cost of disposing of hazardous waste materials if it is budgeted in factory operations and included as part of manufacturing overheads budget is part of the product cost of the firm. A firm can have a regular disposal of hazardous waste material to comply with the environmental laws. Such costs are fixed manufacturing overheads in nature and incurred in factory to comply with laws.

A period cost is a cost which is charged to the income statement during the period in which it is incurred. A period cost is not part of factory overhead budget and is not part of product manufactured. A period cost is not part of inventory cost and expensed when it is incurred. For example: selling, marketing and administrative overheads. Such expenses are non- factory operations related overheads.

ekkarill92 answered 1 year ago

An article in the journal Hazardous Waste and Hazardous Materials (Vol. 6, 1989) reported the results...

An article in the journal Hazardous Waste and Hazardous Materials (Vol. 6, 1989) reported the results of an analysis of the weight of calcium in standard cement and cement doped with lead. Reduced levels of calcium would indicate that the hydration mechanism in the cement is blocked and would allow water to attack various locations in the cement structure. Ten samples of standard cement had an average weight percent calcium of 90.0, with a sample standard deviation of 5.0 and...

I want each of you to research your city/town’s plans for disposing hazardous waste (including, if...

I want each of you to research your city/town’s plans for disposing hazardous waste (including, if applicable, its policy of disposing of drugs). How does it differ from the City of Boston? Did any items, that were listed as hazardous material, surprise you? If you live in the City of Boston, please research another city or town in Massachusetts.

A few years ago there was a hazardous waste spill into the Danube River, coming from...

A few years ago there was a hazardous waste spill into the Danube River, coming from an aluminum processing plant. Some of the compounds in the sludge were iron oxide, aluminum oxide, silicon dioxide, calcium oxide, and titanium (IV) oxide. 1.Calculate the [Al3+] in a saturated solution of wavellite, Al3(PO4)2(OH)F2. Ksp=3.41 x 10-95 2. Calculate the solubility of wavellite in a solution of 0.15 M AlF3 (100% soluble).

Some waste, scrap or by-product materials have little value. In fact, such materials represent liabilities for...

Some waste, scrap or by-product materials have little value. In fact, such materials represent liabilities for companies in that the materials require companies to incur significant disposal costs. Alternatively, some companies have historically found “cheap” ways to dispose of such materials. For example, on Friday April 2nd 1993, residents of Brazos County, Texas, U.S.A., stumbled across 19 cans of industrial waste that were scattered along the banks of the Navasota River. The cans were labelled “lacquer thinner” but the actual...

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost....

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost. a. True b. False Indirect labor would be included in factory overhead. a. True b. False Depreciation expense on factory equipment is part of factory overhead cost. a. True b. False Direct labor cost is an example of a period cost. a. True b. False Custom-made goods would be accounted for using a process costing system. a. True b. False In a process costing...

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard CostsActual CostsDirect materials251,600 lbs. at $5.40249,100 lbs. at $5.20Direct labor18,500 hrs. at $17.3018,930 hrs. at $17.70Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 19,310 directlabor hrs.:Variable cost, $4.80$87,910 variable costFixed cost, $7.60$146,756 fixed costEach unit...

What is the pH of the product resulting from the reaction of a weak base and...

What is the pH of the product resulting from the reaction of a weak base and a weak acid? A)acidic B)basic C)neutral D)cannot be determined

Read “The Global Cost of Electronic Waste” and discuss the dark side of technology from e-waste...

Read “The Global Cost of Electronic Waste” and discuss the dark side of technology from e-waste to the loss of jobs. Identify and expand on one issue that you found most troubling.

Reducing waste in healthcare processes and operations will eventually minimize the associated cost by eliminating unnecessary...

Reducing waste in healthcare processes and operations will eventually minimize the associated cost by eliminating unnecessary steps, etc. Medical overuse is one of the issues that lead to high healthcare costs. Over the years, medical overuse has been addressed by many researchers. Explain how to achieve ‘lean healthcare’ and review/state the unnecessary services and their associated costs.

- Factory supervisors’ salaries -> product cost or period cost and why? - Speakers used in...

- Factory supervisors’ salaries -> product cost or period cost and why? - Speakers used in Sony home-theater systems -> variable or fixed cost and why? - Insurance costs related to a Mary Kay Cosmetics' manufacturing plant -> variable or fixed cost and why?

Question