When the cost object is a unit produced, straight-line depreciation on manufacturing equipment would be a: Variable Cost Fixed Cost Direct Cost
A)No Yes No
B)Yes No No
C)Yes No Yes
D)No Yes Yes

Question

Quizplus · Accepted Answer

Straight-line depreciation on manufacturing equipment is a fixed cost because it does not change with the level of production. It is not a direct cost because it cannot be directly traced to a specific unit produced.

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