gnize costs as expenses in the same period that the cost (resource) is used to generate revenue. Black & Decker (B&D) manufactures cordless hedge trim
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Black & Decker (B&D) manufactures cordless hedge trimmers that it sells to Wal-Mart. In order to produce that, B&D had to purchase a robotic machine that it can be used to produce 1 million hedge trimmers.
Do you think B&D should account for depreciation on its manufacturing equipment the same way Wal-Mart accounts for depreciation on its registers at the checkout counters?
If not, how should B&D account for its depreciation?
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