Identify the following costs as a product cost or a period cost for a magazine publisher.

Identify the following costs as a product cost or a period cost for a magazine publisher.

a. Sales salaries
b. Paper used for the magazine
c. Maintenance on printing machines
d. Depreciation expense—corporate headquarters

Answer:
a. Period cost
b. Product cost
c. Product cost
d. Period cost



Identify the following costs as a product cost or a period cost for an automobile manufacturer.

a. Steel
b. Wages of employees that operate painting equipment
c. Rent on office building
d. Sales staff salaries

Answer:
a. Product cost
b. Product cost
c. Period cost
d. Period cost