7. For financial accounting purposes, depreciation on the equipment used to produce tote bags is...
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7. For financial accounting purposes, depreciation on the equipment used to produce tote bags is a (n) . However, for financial accounting purposes, depreciation
on any equipment used by the company in selling and administrative activities is classified as a (n) . In terms of cost behavior, depreciation is usually a(n)
8. A(n) is also known as an inventoriable cost, because such
costs go into the Work in Process inventory account and then into the Finished Goods inventory account before appearing on the income statement as part of Cost of Goods Sold.
9. For financial accounting purposes, the salary of Lake Company's president is classified as a(n), because the salary will appear on the income statement as an expense in the time period in which it is incurred.
10. Costs are often classified in several ways. For example, Lake Company pays $5,000 rent each
month on its factory building. The rent is part of manufacturing overhead. In terms of cost
behavior, it would be classified as a(n) . The rent can also be
classified as a(n) and as a(n) .
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