Which of the following properly describes the accounting for factory depreciation?
A) Factory depreciation is an inventoriable product cost and is expensed as incurred.
B) Factory depreciation is a period cost and is expensed as incurred.
C) Factory depreciation is a period cost and is expensed when the manufactured product is sold.
D) Factory depreciation is an inventoriable product cost and is expensed when the manufactured product is sold.

Question

Quizplus · Accepted Answer

Factory depreciation is considered a product cost, which means it is included in the cost of manufacturing the product and is expensed when the product is sold.

Which of the Following Properly Describes the Accounting for Factory