Question

Consider the following items that are related to various business and not to a single enterprise:

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.

	Product or Period Cost		Variable or Fixed Cost
Item	Product	Period	Variable	Fixed
A
B
C
D
E
F
G
H
I

Answer 1