Knowledge Check $01$

Which of the following siatements about the concept of cost allocation as it pertains to equipment are true? Note: Select all that apply.

Check All That Apply

Depreciation is recorded as a period expense in the income statement.

The cost of an acquisition of equipment is initially recorded as an asset.

The cost of an acquisition of equipment is allocated to depletion expense over the reporting periods benefited by its use.

For equipment used in the manufacture of a product, depreciation is considered a product cost to be included as part of the cost of inventory.