Depreciation on a factory would be classified as a cost in which part of the value chain?
A) Design
B) Distribution
C) Production
D) Research and development

Question

Quizplus · Accepted Answer

Depreciation on a factory would be classified as a cost in the production part of the value chain. Depreciation is the systematic reduction in the value of an asset over time due to age, wear and tear or other factors. The factory is a production asset and its depreciation is a cost of producing goods.

Depreciation on a Factory Would Be Classified as a Cost