Question
Alpha Corp. makes and seils fully assembled bicycles. They have two primary types of assets. First, they have equipment used to assemble the bicycle salespeople
Alpha Corp. makes and seils fully assembled bicycles. They have two primary types of assets. First, they have equipment used to assemble the bicycle salespeople use thes
Analyze the following:
Second, they have a few vans, with the company logo and pictures of their bicycles on the side. The ahs to travel to potential selling sites, like the weekly Huntington Beach street fair, and make sales. Two costs.
- The depreciation expense for the equipment used to assemble bicycles
- The deprecation expense for the vans used by the salespeople.
The two costs above are most likely to be classified as:
A. (i) administrative expense, (ii)selling. general, and administrative expense
B. (I) selling expense, (ii) manufacturing overhead
C. (i) direct labor, (ii) direct material
D (i) manufacturing overhead, (il) selling. general, and administrative expense
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