Which of the Following Would Be Considered a Product Cost

question 178

Multiple Choice

Which of the following would be considered a product cost for a manufacturing company?

• A) depreciation on delivery vehicles
• B) depreciation on administrative building furniture and fixtures
• C) depreciation on manufacturing equipment
• D) depreciation on the accounting department's computer equipment

---

Definitions:

Loss on Sale

Loss on Sale occurs when the selling price of an asset is less than its carrying amount on the books, resulting in a financial loss.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, representing its decrease in value.

Gain on Sale

The profit earned from selling an asset for more than its book value or purchase price.

Cash

The amount of currency and liquid instruments in a company's possession, used for financial transactions.