Asked by Amanda Jones on Jul 20, 2024
Verified
Baker's wages
A) Product costs
B) Period costs
Baker's Wages
Refers to the compensation paid to bakery workers for their labor, considered as direct labor costs in production.
Product Costs
All costs incurred to acquire or manufacture a product, including direct materials, direct labor, and manufacturing overhead expenses.
Period Costs
Expenses that are not directly tied to the production of goods, such as sales and marketing expenses, which are expensed in the period they are incurred.
- Pinpoint and segregate costs as pertaining to product or period expenditures.
Verified Answer
RS
Ruthson SeideJul 23, 2024
Final Answer :
A
Explanation :
Baker's wages are directly associated with the production of cakes, making them product costs, as they vary with the level of production.
Learning Objectives
- Pinpoint and segregate costs as pertaining to product or period expenditures.