Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company.

Depreciation is always considered a product cost for external financial reporting purposes in a manufacturing company.

Depreciation could be a product cost or a period cost for external financial reporting purposes in a manufacturing company.

Multiple Choice

Only statement $1$ is true.

Only statement $2$ is true.

Only statement $3$ is true.

None of the statements are true.