Reference:
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-The hard drive installed in each computer.
A)Fixed period cost.
B)Fixed product cost.
C)Variable period cost.
D)Variable product cost.

Question

Reference: 
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-The hard drive installed in each computer.
A)Fixed period cost.
B)Fixed product cost.
C)Variable period cost.
D)Variable product cost.

Quizplus · Accepted Answer

The hard drive installed in each computer is a variable product cost because it varies with the number of computers produced and is directly associated with the manufacturing of the product.

Reference: Tech Computer Manufactures Computers in Its Plant Located in Toronto