Classify each of Ford Motor Company’s costs as either product costs or period costs. Ford MotorCompany is an automobile manufacturer headquartered in Detroit, Michigan.
| Cost of chemical included in paint to inhibit rust |
| Life insurance for the CEO |
| Cost of electricity at the Lima Engine Plant in Ohio |
| Depreciation on the buildings at the Flat Rock Assembly Plant in Michigan |
| Cost of ad campaign and slogan called “By Design” to high-light the designs of Ford’s cars |
| Purchase of aluminum to be used in car wheels |
| Salaries of Ford engineers researching ways to reduce CO2 emissions |
| Cost of new software to schedule production |
| Salaries of Ford Motor Company’s top executivesa. |
Darshita Changed status to publish August 7, 2020
Answer:
| Cost of chemical included in paint to inhibit rust | Product cost |
| Life insurance for the CEO | Period cost |
| Cost of electricity at the Lima Engine Plant in Ohio | Product cost |
| Depreciation on the buildings at the Flat Rock Assembly Plant in Michigan | Product cost |
| Cost of ad campaign and slogan called “By Design” to high-light the designs of Ford’s cars | Period cost |
| Purchase of aluminum to be used in car wheels | Product cost |
| Salaries of Ford engineers researching ways to reduce CO2 emissions | Period cost |
| Cost of new software to schedule production | Product cost |
| Salaries of Ford Motor Company’s top executivesa. | Period cost |
Darshita Changed status to publish August 7, 2020
