00:01
Hello students, here is a question.
00:03
Cost item that which we have to find out either it belongs to a product or period cost, direct or indirect cost or fixed or variable cost.
00:13
So for all the nine things we have to find out this.
00:17
So let us do the solution for that.
00:18
The first one will be depreciation on salesperson's car.
00:25
So this will be the period cost and it will be an indirect cost and it will be the fixed cost.
00:44
When it comes to fixed or variable, it will be the fixed cost because it is not directly for the production.
00:51
It is indirect cost since there is no direct type specific product and it's a fixed cost since it does not change with the level of production.
00:58
And the second is rent on equipment used on factory.
01:03
So it is product cost since it is directly tied to the production, then indirect cost since it is not directly tied to the specific product, then fixed cost since it does not change with the level of production.
01:22
And the third is lubricants used for machine maintenance.
01:25
It will be the product cost, indirect cost and variable cost.
01:36
Variable cost because since it changed the level of production and the fourth is salary of a personnel who work for the finished goods warehouse.
01:44
So it is a period cost since it is not directly tied to the production and indirect cost since it does not directly tied to the specific product and it is a fixed cost since it does not change with the level of production.
02:03
Then the fifth is soap and paper towel used for the factory workers at the end of a shift of a product shift.
02:09
So this will be the product cost since it directly tied to the production and indirect cost since it is not directly tied to the specific product, then variable cost since it changes with the level of production and the sixth is factory supervisor salary...