Cubic feet are the logical cost driver for depreciation expense from heating and air conditioning equipment.

Question

Quizplus · Accepted Answer

Cubic feet are a key factor in determining the size of heating and air conditioning equipment needed for a building, and larger sizes generally have higher depreciation costs. Therefore, cubic feet can be considered a logical cost driver for depreciation expense related to HVAC equipment.

Cubic Feet Are the Logical Cost Driver for Depreciation Expense