Depreciation on a Personal Computer Used in the Marketing Department

question 109

Multiple Choice

Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as:

• A) a product cost that is fixed with respect to the company's output.
• B) a period cost that is fixed with respect to the company's output.
• C) a product cost that is variable with respect to the company's output.
• D) a period cost that is variable with respect to the company's output.

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Definitions:

Samsung Electronics

A multinational electronics company headquartered in South Korea, known for manufacturing a wide range of consumer and industry electronics, including smartphones, TVs, and semiconductors.

Samsung Life Insurance

A major life insurance company based in South Korea, providing a range of life insurance and financial services.

Product Line Extension

The addition of new products to an existing product line, usually closely related to one or more of the existing products, aimed at capturing a wider segment of the market.

Advertising Costs

Refers to the expenses incurred by a company to promote its products or services through various media channels such as television, radio, digital platforms, etc.