14. Period (nonmanufacturing) costs are classified into two categories: selling and administrative. (T/F) 15. Factory overhead...

14. Period (nonmanufacturing) costs are classified into two categories: selling and administrative. (T/F) 15. Factory overhead includes all manufacturing costs except direct materials and direct labor. (T/F) 16. Period costs are operating costs that are expensed in the period in which the goods are sold. (T/F) 17. Factory overhead is an example of a product cost. (T/F)

Expert Solution

14. Period (nonmanufacturing) costs are classified into two categories: selling and administrative. (T/F)
TRUE.
manufacturing cost are Product Costs. Selling, General and administrative cost are Period Cost, both Variable and Fixed.
15. Factory overhead includes all manufacturing costs except direct materials and direct labor. (T/F)
TRUE.
This is because Direct material and Direct Labor are DIRECT COST [prime Cost]. Factory Overheads include Indirect material, indirect labor, indirect manufacturing cost.
16. Period costs are operating costs that are expensed in the period in which the goods are sold. (T/F)
TRUE.
These include Direct material cost, direct labor cost, and factory Overheads.
17. Factory overhead is an example of a product cost. (T/F)
TRUE. Product Cost includes Direct manufacturing cost as well as Indirect manufacturing costs. Product Cost = Direct material + Direct Labor cost + Factory Overheads [indirect manufacturing costs]

ekkarill92 answered 1 year ago

10. Prime costs are the combination of direct labor costs and factory overhead costs. (T/F) 11....

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