Which of the following costs should not be recorded as an expense?
A) Insurance on factory building
B) Sales commissions
C) Product shipping costs
D) Product advertising

Question

Quizplus · Accepted Answer

Insurance on factory building is a cost associated with an asset (the factory building) and should be recorded as a part of the cost of the asset, not as an expense. The cost should be recorded as depreciation expense over the life of the asset.

Which of the Following Costs Should Not Be Recorded as an Expense