Tag Archives: product costs

What are the product and period costs associated with a Broadway theater bar?

Broadway theaters saw record attendance in the 2014 – 2015 season, with ticket sales up 7.3% over the prior season (“Theater Bars Are a Smash Hit on Broadway,” Wall Street Journal, December 28, 2015.) As a result, private hospitality companies who operate bars in Broadway theaters have experienced sales growth as well. One such hospitality […]

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What product costs and period costs go into McDonald’s French fries?

McDonald’s recently released a video featuring Grant Imahara, a former host from “Mythbusters,” about how its French fries are made.  Some people have said that its French fries are mashed-up potatoes (or other ingredients) pressed into French fry shapes.  To see how the French fries are actually made, see the video at http://time.com/3675518/how-mcdonalds-makes-french-fries/ (5:06 minutes.) Questions […]

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What items are product costs versus period costs at the U.S. PEZ Candy Inc. facilities in Connecticut?

PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers.  In the United States, PEZ candies are produced in a factory in Connecticut. The Connecticut location also houses PEZ’s US headquarters and a PEZ Visitors Center.  PEZ candy is made from sugar, fruit flavoring, coloring, and corn syrup; the ingredients […]

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What types of costs are incurred when manufacturing marshmallow cookies?

This posting is about an activity you can use to discuss the various types of manufacturing costs.  The cost object is a box of marshmallow cookies.  The first step is to show (or ask students to watch) this 4:38 minute “How It’s Made” video about marshmallow cookies. Questions 1) What are the direct materials of the […]

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