For a manufacturing-sector company, the cost of factory depreciation is classified as a ________.
A) direct material cost
B) direct manufacturing labor cost
C) manufacturing overhead cost
D) period cost

Question

Quizplus · Accepted Answer

Factory depreciation is a manufacturing overhead cost as it is an indirect cost of production that cannot be directly traced to a specific unit of product. It is incurred to maintain the factory's productive capacity and hence is part of the manufacturing overhead cost.

For a Manufacturing-Sector Company, the Cost of Factory Depreciation Is