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QUESTION

45% of the building is for fabrication of the product, 25% for storage of the finished product prior to delivery to customer, and 30% for storage of...

  1. 45% of the building is for fabrication of the product, 25% for storage of the finished product prior to delivery to customer, and 30% for storage of the raw material.
  2. 75% of the time the factory equipment is used to build the product; 15% of the time the equipment is used for test runs during maintenance; and 10% of the time the equipment will be used by the sales force to demonstrate the company product. 

In both situations which cost are inventorial costs and which are period costs?

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