Ea1.
lo 4.1little things manufactures toys. for each item listed, identify whether it is a product cost, a period cost, or not an expense.

internet provider services
material expense
raw materials inventory
production equipment rental
showroom rental
factory employee salary
human resource director salary

There is a various cost that involves product cost and the period cost. The product cost is the cost required to produce the product. It involves direct material, direct labor, and the manufacturing overhead cost

And, the period cost is that cost which is fixed in nature like - sales commissions, service cost, manager salary, etc

So, the categorization is shown below:

Internet provider services

- period cost

Material expense

- expense cost

Raw materials inventory

- not an expense as it is a come in the current asset

Production equipment rental

- product cost

Showroom rental

- period cost

Factory employee salary

- product cost

Human Resource Director salary

- period cost

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police