Questions: How would miscellaneous supplies used in assembling a product be classified for a manufacturing company? Multiple Choice Fixed, period cost Fixed, product cost Variable, product cost. Variable, period cost

The answer is the third one: Variable, product cost.

Explanation for each option:

1. Fixed, period cost: This classification is incorrect because miscellaneous supplies used in assembling a product are not fixed costs. Fixed costs remain constant regardless of the level of production, such as rent or salaries of permanent staff. Additionally, period costs are not directly tied to the production process but are expensed in the period they are incurred, such as administrative expenses.

2. Fixed, product cost: This classification is also incorrect because, while product costs are directly tied to the production process, miscellaneous supplies are not fixed costs. They vary with the level of production.

3. Variable, product cost: This is the correct classification. Miscellaneous supplies used in assembling a product are variable costs because the amount used can vary depending on the level of production. They are also product costs because they are directly associated with the manufacturing process and are necessary for assembling the product.

4. Variable, period cost: This classification is incorrect because, although miscellaneous supplies are variable costs, they are not period costs. Period costs are not directly tied to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.

Summary: Miscellaneous supplies used in assembling a product for a manufacturing company are classified as variable, product costs because they vary with the level of production and are directly associated with the manufacturing process.