When the cost object is a unit produced, straight-line depreciation on manufacturing equipment would be a
A) i
B) ii
C) iii
D) iv

Question

When the cost object is a unit produced, straight-line depreciation on manufacturing equipment would be a 
A) i 
B) ii 
C) iii 
D) iv

Quizplus · Accepted Answer

Straight-line depreciation on manufacturing equipment is a product cost, which is a cost associated with producing a unit of product. Thus, it fits the definition of a cost object being a unit produced. Therefore, option i is the best choice.

When the Cost Object Is a Unit Produced, Straight-Line Depreciation