The Costs Related to Buildings (Such as Rent and Insurance)

question 134

True/False

The costs related to buildings (such as rent and insurance), equipment (such as lease payments or straight-line depreciation), and salaried labor in a factory are all examples of cost items that would be part of the fixed overhead budget.

---

Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Depreciation Table

A schedule that shows the depreciation expense, accumulated depreciation, and book value of each asset over its useful life.

Delivery Van

A Delivery Van is a type of vehicle used by businesses for the transportation of goods, products, or materials directly to customers or between locations.

Residual Value

The projected amount an asset is expected to yield when it is sold after its period of usefulness has ended.