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managerial accounting Using the code letters below, indicate in the space provided how each of the following costs should be classified for a pen manufacturing company: Code Letters DM = Direct materials WP = Work in process DL = Direct labor FG = Finished goods MO = Manufacturing overhead PC = Period cost (a) Property tax on the factory building. (b) The chief financial officer's salary. -(c) Plastic used to manufacture pens. (d) Janitors at the factory. (e) Manufactured pens waiting to be sold to customers (f) Advertising logos (g) Partially completed pens.

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Answer:

Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.

Explanation:

Managerial for a pen manufacturing company with the following coast classifications Code Letters:

  • DM = Direct materials
  • WP = Work in process
  • DL = Direct labor
  • FG = Finished goods
  • MO = Manufacturing overhead
  • PC = Period cost

(a) Property tax on the factory building is MO

(b) The chief financial officer's salary is PC

(c) Plastic used to manufacture pens is DM

(d) Janitors at the factory is DL

(e) Manufactured pens waiting to be sold to customers is FG

(f) Advertising logos is  PC

(g) Partially completed pens is WP

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