Depreciation on the production equipment would appear in which of the following budgets?
A) cash budget
B) production budget
C) selling and administrative expenses budget
D) manufacturing overhead budget

Question

Quizplus · Accepted Answer

Depreciation on production equipment is a manufacturing overhead cost and therefore would appear in the manufacturing overhead budget. The cash budget deals with cash inflows and outflows, the production budget deals with the quantity of goods to be produced, and the selling and administrative expenses budget deals with non-manufacturing costs.

Depreciation on the Production Equipment Would Appear in Which of the Following