When is the cost of manufacturing equipment recognized as an expense?
A) When equipment depreciation is recorded
B) When inventory processing is completed and finished goods are recorded
C) When finished goods inventory is sold
D) None of the above

Question

Quizplus · Accepted Answer

Depreciation on manufacturing equipment is a product cost that is recognized as an expense as part of cost of goods sold only when the product produced by the equipment is sold

When Is the Cost of Manufacturing Equipment Recognized as an Expense