Which of the Following Statements About the Entry to Record

question 87

Multiple Choice

Which of the following statements about the entry to record depreciation is true?

• A)The entry involves a credit to a liability.
• B)The entry involves a credit to Depreciation Expense.
• C)The entry involves a credit to the asset being depreciated.
• D)The entry involves a credit to a contra-asset account.

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods and services.

Variable Overhead Rate

A rate that changes with the level of activity or production volume, applied to variable overhead costs.

Lubricants Variance

A difference between the expected and actual cost of lubricants used in a manufacturing or operational process.

Variable Overhead

Variable overhead consists of indirect production costs that vary with the level of output, such as utilities for manufacturing facilities.