Situation: better living through powerpoint, llc is a consulting firm that works with clients to improve internal reporting practices. the firm uses a job-order costing system that allocates overhead on the basis of consultant labor dollars. a client contract is best categorized as which of the following?
expenditure
period cost
product cost
cost object
indirect cost

Cost Object

Explanation:

The contract will be a cost object.

Cost for labor and overhead will be assign and allocate to the contract to determinate the cost.

The period cost will be not being assign to the contract.

It will be assigned with product cost like labor cost and, the allocate indirect cost using the overhead predetermined rate

answer: The solution is (4,1)

m = 4    n = 1

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