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The following is a comment from a fictitious company controller: Recently Broderick Company experienced a strike that affected a number of its operating plants.
The following is a comment from a fictitious company controller: "Recently Broderick Company experienced a strike that affected a number of its operating plants. The controller of this company indicated that it was not appropriate to report depreciation expense during this period because the equipment did not depreciate and an improper matching of costs and revenues would result. She based her position on the following points. 1. It is inappropriate to charge the period with costs with which there is no related revenues arising from production. 2. The basic factor of depreciation in this instance is wear and tear. Because equipment was idle, no wear and tear occurred." Comment on whether you agree with the controller. Examine it as a question that requires analysis, and does not necessarily have a correct answer. Try to raise at least a few different points in your comment. Reply to one of your classmates posts as well. Your comment should be 1-2 paragraphs. Your reply to a classmate's post can be just a few sentences.
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