A functional classification of costs would classify "depreciation on office equipment" as a
A)product cost.
B)general and administrative expense.
C)selling expense.
D)variable cost.

Question

Quizplus · Accepted Answer

Depreciation on office equipment is a type of general and administrative expense, which is a cost incurred to support the overall functioning of the business and not directly tied to the production or sale of a specific product.

A Functional Classification of Costs Would Classify "Depreciation on Office