Depreciation expense-factoryA)Prime costsB)Conversion costsC)Both prime and conversion costsD)Neither prime nor conversion costs

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Jonathan Chapman · Accepted Answer

Final Answer : b, Explanation :  Depreciation expense of factory equipment is considered a factory overhead cost, along with other indirect costs associated with manufacturing baked goods.Answer: A, B, DDirect materials and direct labor costs directly relate to the production of baked goods, while nonmanufacturing costs may include expenses such as advertising, rent for the storefront, and office supplies.

Depreciation expense-factory
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

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