Select the Incorrect Statement Regarding the Recognition of Depreciation on Manufacturing

question 146

Multiple Choice

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

• A) Recognizing depreciation on manufacturing equipment is an asset exchange event.
• B) Depreciation on manufacturing equipment is an indirect product cost.
• C) Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the Manufacturing Overhead account.
• D) If the equipment was used to work on a job, the amount of depreciation must be entered on the appropriate job cost sheet.

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Definitions:

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