Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 14 - Managerial Accounting - Self-Test Questions - Page 778: 5

Answer

D - depreciation on testing equipment

Work Step by Step

Choices (A) and (C) are direct material costs, and Choice (B) is a direct labor cost. Answer (D) is correct because depreciation relevant to production/assembly is factored into manufacturing overhead.
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