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:

Government Policy

The actions or inactions taken by the governing body to address public issues, which can influence economic conditions, social welfare, and the regulatory environment.

Producer Surplus

The differentiation between the selling price sellers are willing to accept and the price they eventually get.

Government Policy

Strategies and measures adopted by a government to guide its actions in the pursuit of specific goals and objectives.

Consumer Surplus

The difference between what consumers are willing to pay for a good and what they actually pay, representing the benefit consumers receive from purchasing the good at a lower price.