Depreciation Is

question 113

Multiple Choice

Depreciation is

• A)the value of worn-out equipment,machinery,and buildings.
• B)the value of the decrease in business inventory stocks.
• C)the value of the addition to the capital stock.
• D)the decline in the value of the stock market,net of dividends.

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Definitions:

Prime Costs

The total cost of direct materials and direct labor incurred in the production of goods.

Conversion Costs

The combination of labor costs and overhead costs that are incurred to convert raw materials into finished goods.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the production of goods or services, excluding benefits and overtime.

Manufacturing Process

The series of operations involved in the production of goods, encompassing everything from raw materials to finished product stages.