The cost of leasing production equipment is classified as: $\begin{array}{lcc}
& \text { Prime cost } & \text { Product cost } \
\text { A) } & \text { No } & \text { Yes } \
\text { B) } & \text { No } & \text { No } \
\text { C) } & \text { Yes } & \text { No } \
\text { D) } & \text { Yes } & \text { Yes }
\end{array}$

Question

The cost of leasing production equipment is classified as: $\begin{array}{lcc} 
& \text { Prime cost } & \text { Product cost } \
\text { A) } & \text { No } & \text { Yes } \
\text { B) } & \text { No } & \text { No } \
\text { C) } & \text { Yes } & \text { No } \
\text { D) } & \text { Yes } & \text { Yes }
\end{array}$

Quizplus · Accepted Answer

The cost of leasing production equipment is a product cost because it is incurred in the production of goods. Prime costs are direct material and direct labor costs.

The Cost of Leasing Production Equipment Is Classified As A)Option a B)Option B C)Option C D)Option D

The Cost of Leasing Production Equipment Is Classified As A)Option a
B)Option B
C)Option C
D)Option D