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Managerial Accounting

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Whiz Kid: Classify Costs Direct Value Added Product

MGRACT-1SSKEU

Whiz Kid offers lifestyle coaching for entrepreneurs by either monthly subscriptions to the coaching webcasts or charging by the hour for one-on-one sessions. How should the payments for the cost of the website that enables customers to download the webcast be classified when deciding the cost of the webcast?

I. direct
II. indirect
III. value-added
IV. non-value-added
V. product cost
VI. period cost

A

I, III and V

B

II, III and VI

C

III and VI

D

II, III and V