A Functional Classification of Costs Would Classify "Depreciation on Office

question 26

Multiple Choice

A functional classification of costs would classify "depreciation on office equipment" as a

• A)product cost.
• B)general and administrative expense.
• C)selling expense.
• D)variable cost.

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Definitions:

Fair Market Value

The price that a property would sell for on the open market, where both buyer and seller have reasonable knowledge of all pertinent facts.

Increase Of Hazards Clause

A provision in insurance policies that allows the insurer to deny coverage if the insured significantly increases the risk or hazard insured against.

Highly Explosive Material

Substances that have a rapid and violent chemical reaction causing an explosion.

Insurance Coverage

Protection provided by an insurance policy against financial losses from specific risks or damages.