Asked by Randell Baley on Jul 20, 2024
Verified
Depreciation on factory machinery
A) Product
B) Period
Factory Machinery
Refers to the equipment and machines used in manufacturing processes within a factory setting.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
- Recognize the contrast between costs associated with products and those attributed to periods.
Verified Answer
DC
DANNY CUELLARJul 23, 2024
Final Answer :
A
Explanation :
Depreciation on factory machinery is directly associated with the cost of producing goods and therefore is considered a product cost.
Learning Objectives
- Recognize the contrast between costs associated with products and those attributed to periods.