Depreciation on the Factory Would Be an Example of A

question 21

Multiple Choice

Depreciation on the factory would be an example of a:

• A)Controllable fixed cost.
• B)Period cost.
• C)Responsibility cost.
• D)Committed fixed cost.

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Definitions:

Owns

To own means to have legal right or title to an object, property, or asset, granting the holder exclusive rights to the use, enjoyment, and disposition of that asset.

Accepted

Acknowledged or agreed upon; an offer or proposal that has been received and approved.

Reasonable Amount

A quantity or level of something (such as time, cost, or size) that is considered fair, proper, and appropriate under typical circumstances.

Express Terms

Specific provisions or conditions explicitly stated in a contract or agreement.