Which of the following costs should be recorded as an expense in the period incurred?
A) Salary of administrative employee
B) Depreciation of manufacturing equipment
C) Insurance for the factory building
D) All of these are expenses.

Question

Quizplus · Accepted Answer

Only option A, salary of administrative employee, should be recorded as an expense in the period incurred. Depreciation and insurance are both examples of costs that are allocated over multiple periods through the use of accounting methods such as depreciation expense and prepaid insurance.

Which of the Following Costs Should Be Recorded as an Expense