Answer
a.
The costs ought to be attached to the present-day period under consideration.
The benefits linked with the costs do not unescapably have to be constrained to the recent period; they can transpire in forthcoming periods.
The costs should not be associated with particular products.
The period costs should not be unequivocally interconnected to revenues.
b
i. These costs could be regarded as overheads, specifically if they are linked to material handling. Consequently, they can be acknowledged as product costs, albeit indirect.
ii. The discounts can be traced to specific materials; thus, they should be accepted as product costs.
Work Step by Step
N/A
