The Journal Entry to Record an Addition to an Office

question 35

Multiple Choice

The journal entry to record an addition to an office building would include:

• A)credit to Depreciation Expense.
• B)credit to Accumulated Depreciation.
• C)debit to Repair Expense.
• D)debit to Office Building.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.

Average Total Costs

The total expenses incurred in the process of producing or offering a good or service, divided by the quantity of goods or services produced or offered.

Average Variable Costs

The sum of all variable production costs divided by the total number of units produced.

Output

The amount of something produced by a person, machine, or industry.