Reference:
Tech Computer manufactures computers in its plant located in Toronto and then ships the computers directly to distributors and retailers. The company's accountant has enlisted you to classify the following company's expenses:
-Straight line depreciation on the factory building.
A)Variable period cost.
B)Fixed period cost.
C)Variable product cost.
D)Fixed product cost.

Question

Quizplus · Accepted Answer

Straight line depreciation on the factory building is a fixed product cost because it is a manufacturing overhead cost that does not vary with production levels and is associated with the production process.

Reference: Tech Computer Manufactures Computers in Its Plant Located in Toronto