For a manufacturing business, which of the following would be considered an inventoriable product cost?
A) Depreciation of delivery vehicles
B) Depreciation of administrative building furniture and fixtures
C) Depreciation of manufacturing equipment
D) Depreciation of the accounting department computer equipment

Question

Quizplus · Accepted Answer

Depreciation of manufacturing equipment is considered an inventoriable product cost because it is directly related to the production of goods. Depreciation of delivery vehicles, administrative building furniture and fixtures, and accounting department computer equipment are all considered period costs and should be expensed in the period they are incurred.

For a Manufacturing Business, Which of the Following Would Be