Asked by
Isabella Keogh
on Nov 19, 2024
Verified
Depreciation on equipment a company uses in its selling and administrative activities would be classified as a period cost.
Period Cost
Costs that are expensed in the period in which they are incurred, as opposed to being capitalized or included in the cost of goods sold.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear, tear, or obsolescence.
- Discriminate between product and period costs and acknowledge their repercussions on financial reporting.
Verified Answer
RC
Learning Objectives
- Discriminate between product and period costs and acknowledge their repercussions on financial reporting.
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