Depreciation on Factory Equipment Is A(n)

question 35

Multiple Choice

Depreciation on factory equipment is a(n) :

• A)selling and administrative cost
• B)manufacturing overhead cost
• C)other income (expense)D)indirect material

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Definitions:

Capital

Resources made and used by people to produce and distribute goods and services, including buildings, machinery, and equipment.

Entrepreneurial Ability

The imagination required to develop a new product or process, the skill needed to organize production, and the willingness to take the risk of profit or loss

Natural Resources

Assets derived from the earth such as minerals, forests, water, and fertile land that can be used for economic gain.

Scarce

A condition where resources are limited in availability and cannot fully meet the unlimited wants of people.