The following are costs associated with manufacturing firms, or service firms:

A. Miscellaneous materials used in production
B. Salesperson’s commission in real estate firm
C. Administrators’ salaries for a furniture wholesaler
D. Administrators’ salaries for a furniture manufacturer
E. Freight costs associated with acquiring inventories for a grocery store
F. Office managers salary in a doctors office
G. Utilities for the corporate offices of a toy manufacturer
H. Line supervisors salary for a clothing manufacturing firm
I. Training seminar for sales staff of a service firm
J. Fuel used in a trucking firm
K. Paper used at a printing business
L. Oil for machinery at a plastics manufacturing firm
M. Food used at a restaurant
N. Windshields used for a car manufacturer


Classify the cost as (1) product or period (2) variable or fixed; and (3) for those that are product-costs, direct materials, direct labor, or manufacturing overhead. Write “not applicable (N/A)(: if a category doesn’t apply.
This is what I got, but I am always worried when I have a lot of one answer. Any help is much appreciated!
a) 1-Product 2-Variable 3-Manufactoring Overhead
b) 1-Period 2-Variable 3- N/A
c) 1-Period 2-Fixed 3-N/A
d) 1-Period 2-Fixed 3-Direct labor
e) 1-Period 2-Variable 3-N/A
f) 1-Period 2-Fixed 3-N/A
g) 1-Period 2-Variable 3-N/A
h) 1-Period 2-Fixed 3-Direct labor
I) 1-Product 2-Variable 3-Direct labor
j) 1-Period 2-Variable 3-N/A
k) 1-Product 2-Variable 3-Direct material
l) 1-Period 2-Variable 3-Manufactoring overhead

First, thank you for finally starting your own thread for this instead of tagging onto someone else's thread. I did not attempt to answer it because it got a bit frustrating scrolling from your answers (only) back up to the original question. Much easier when you put it in your own thread altogether in the same post.

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This is what I got, but I am always worried when I have a lot of one answer.

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That is irrelevant. You never know what someone will do with a problem -- there's really nothing wrong with having answer "A" 10 times in a row. Don't let that throw you off. Many of things in the list are not related to production because they aren't manufacturing companies.

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e) 1-Period 2-Variable 3-N/A

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That's a bit of an unfair question. It's more of an incremental cost. But I'll pretend if you must pick one, that variable seems logical.

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g) 1-Period 2-Variable 3-N/A

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In an office this in all probability fixed. What is the "variance" based on?

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h) 1-Period 2-Fixed 3-Direct labor

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Product cost - related to production. It's also overhead. "Salary" is a clue word there.

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i) 1-Product 2-Variable 3-Direct labor

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Totally off. Where's the product? And if no product, we don't answer #3. As for variable, kind of unfair. I don't know how you could know this.

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l) 1-Period 2-Variable 3-Manufactoring overhead

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#3 only counts when #1 is a product cost. That should be a clue something is wrong. It's a product cost.

Thanks for the help! I also realized that I did not post the last two answers so here those are as well:

m) 1-Product 2-Variable 3-Direct material
n) 1-Product 2-Variable 3-Direct material

It looks like I am mostly right in what I have with the few exceptions that you pointed out... is that fair to assume? Your help is greatly appreciated!! This class has been a rough one!

Basically, if I don't say something about something, then it's correct. Unless I miss something of course.

Do keep in mind that with managerial, and especially stuff like this, there are things that get into opinion. I don't always agree with the author or the instructor or other people. For the sake of class, the instructor's opinion is the only one that counts. :-)

Thanks Again!! It has been a huge help!:)

Demruage cost should be include in cost or should be add profit & loss a/c