When manufacturing products,which of the following is an example of an inventoriable cost?
A)Depreciation on office equipment
B)Depreciation on store building
C)Depreciation on factory equipment
D)Sales salaries expenses

Question

Quizplus · Accepted Answer

Depreciation on factory equipment is an example of an inventoriable cost, as it is a cost directly related to the production of goods. The depreciation expense on office equipment and store building is considered a period cost and is not directly related to the production of goods. Sales salaries expenses are also considered a period cost, as they are incurred for selling and administrative expenses and are not directly related to the production of goods.

When Manufacturing Products,which of the Following Is an Example of an Inventoriable