Depreciation on a personal computer used in the marketing departmentof a manufacturing company would be classified as:a. a product cost that is fixed with respect to the company's output.b. a period cost that is fixed with respect to the company's output.c. a product cost that is variable with respect to the company's output.d. a period cost that is variable with respect to the company's output.

Depreciation on a personal computer used in the marketing department is considered a period cost…

Answered: Depreciation on a personal computer…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 2EA: For the following descriptions state whether the cost is controllable or uncontrollable by...

See similar textbooks

Similar questions

Choose best option in this general account questions
Which of the following is a product cost? A) Sales commissions B) CEO's salary C) Delivery van depreciation D) Depreciation on production equipment
Which of the following is a manufacturing product cost? a. Depreciation on factory equipment b. Sales commissions c. Cost to repair manufacturing machinery d. All are product costs. e. Both a and c are product costs.
Which of the following is an example of a cost that varies in proportion to changes in the activity base? Depreciation on machinery Packaging cost Factory rent Insurance cost
Which of the following costs would be considered a period rather than a product cost in a manufacturing company? a. Direct materials cost. b. Property tax on the corporate headquarters. c. Electric cost to light the factory. d. Depreciation expense on manufacturing equipment.
Statement 1: Manufacturing overhead is an indirect cost with respect to units of product. Statement 2: Depreciation on office equipment would be included in the cost of goods manufactured. Statement 3: Rent on factory building used in the production process would be classified as a period cost and as a fixed cost. Statement 4: The amount that a manufacturing company could earn by renting out unused portion of its warehouse is an example of an opportunity cost. Statement 5: Internal failure costs result from identification of defects during the appraisal process such as scrap, rejected products, rework and downtime. a. All statements are true b. Statements 1, 3 and 5 c.Statements 1, 2 and 4 are true are true d. Statements 1, 4 and 5 are true e.Statements 2, 4 and 5 are true f. Statements 2, 3 and 4 are true
In a make or buy decision, the relevant costs include variable manufacturing costs as well as A. Depreciation costs B. General office cost C. Avoidable fixed costs D. Factory management cost
Provide cost account answer
Why are product costs sometimes called inventoriable costs? Describe the flow of such costs ina manufacturing company from the point of incurrence until they finally become expenses on theincome statement.
Which of the following costs is NOT capitalized as inventory? a. Rent on Head Office building b. Costs of delivering finished goods c. Manufacturing overhead cost d. Factory amortization
Which of the following is an example of a variable cost? a.Insurance on the production equipment b.Direct materials c.The production supervisor's salary d.Depreciation of the factory building e.None of these
For a manufacturing company, which of the following is an example of a period cost rather than a product cost? a. Depreciation on factory equipment b. Advertising expense c. Wages of machine operators d. Insurance on factory equipment

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS