Explain why are pension and health benefits classified

Assignment Help Managerial Accounting

Reference no: EM132809950

Problem 1: Why are pension and health benefits classified as product costs and not period costs? Also, explain why these benefits are classified as manufacturing overhead costs rather than direct labor.

Assuming that you are preparing a seminar on cost-volume-profit analysis for non-accountants. Several potential attendees have approached you and have asked why they would be interested in learning about your topic. Individuals include:

a. A factory worker who serves as her company labor union representative is in charge of contract negotiations.
b. A purchasing agent in charge of ordering raw materials for a large manufacturing company.
c. A vice president of sales for a large automobile company.
d. A dean

Reference no: EM132809950

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