Repair and maintenance costs for factory equipment are inventoriable product costs.

Name: Repair and maintenance costs for factory equipment are inventoriable product costs.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

Repair and maintenance costs for factory equipment are considered as direct costs of producing or manufacturing goods because they are necessary for keeping the equipment in good working condition to produce goods. Therefore, they are included in the cost of inventory and treated as inventory costs or product costs.

Repair and Maintenance Costs for Factory Equipment Are Inventoriable Product