Product VS Period Costs – Answer Key

Identify the following as either a product (Inventoriable) Cost or a Period Cost.

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