Depreciation can be classified as either an inventoriable cost or a period cost, depending on what is being depreciated.

Name: Depreciation can be classified as either an inventoriable cost or a period cost, depending on what is being depreciated.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation can be considered an inventoriable cost if the asset being depreciated is directly used in the production of goods or services that will be sold. Otherwise, depreciation is classified as a period cost.

Depreciation Can Be Classified as Either an Inventoriable Cost or a Period