FREE Trial

How would each of the following costs be classified if units produced is the activity base? a.

Question:

How would each of the following costs be classified if units produced is the activity base?
a. Straight-line depreciation of plant and equipment
b. Salary of factory supervisor ($80,000 per year)
c. Property insurance premiums of $5,000 per month on plant and equipment

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 71% (21 reviews)

a Fixed ...View the full answer


answer-question-section
Answered By
tutor-profile-image
Gilbert Chesire
I am a diligent writer who understands the writing conventions used in the industry and with the expertise to produce high quality papers at all times. I love to write plagiarism free work with which the grammar flows perfectly. I write both academics and articles with a lot of enthusiasm. I am always determined to put the interests of my customers before mine so as to build a cohesive environment where we can benefit from each other. I value all my clients and I pay them back by delivering the quality of work they yearn to get.
4.80+ 14+ Reviews 49+ Question Solved
Related Book For  book-img-for-question
Accounting

Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

See More Books
Question Posted:
See More Questions

Related Video

In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue

Students also viewed these Managerial Accounting questions

Weaver Leather #225 Round Swivel Snap - ISBN: B004HYN9OE - Free Book