Depreciation of Factory Equipment Is Classified As

question 14

Multiple Choice

Depreciation of factory equipment is classified as:

• A)operating cost.
• B)opportunity cost.
• C)manufacturing overhead.
• D)prime cost.
• E)administrative cost.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares of the paying company's stock rather than cash.

Common Stock Account

An equity account that represents the ownership interest held by common shareholders in a corporation, including its value and dividends.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares issued; it's often referred to as additional paid-in capital.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.