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Which of the following statements is true? Select one: a. Depreciation on office equipment would not...

Which of the following statements is true?

Select one:

a. Depreciation on office equipment would not be included in cost of goods manufactured.

b. Period costs are found only in manufacturing companies, not in merchandising companies.

c. Variable cost per unit are affected by changes in activity level.

d. A publisher that sells its books through agents who are paid a constant percentage commission on each book sold would classify the commission as a fixed cost.

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Answer #1

Correct answer------------a. Depreciation on office equipment would not be included in cost of goods manufactured.

.

Depreciation on office equipment is a period cost and it is not included in cost of goods manufactured.

Period costs are selling, general and administrative expense which are found in manufacturing companies as well as merchandising companies.

Variable costs per unit do not change but total variable cost change with change in activity level.

sales commission to agent is variable cost not fixed cost.

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