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Cost Terms and Classifications
?
Straight-line amortization on a computer used in the marketing department of a manufacturing firm would be classified as
a product cost that is fixed in terms of cost behaviour.
a period cost that is fixed in terms of cost behaviour.
an asset representing funds accumulated to replace the computer when it is retired.
a liability representing the probably future outlay of funds to replace the computer when it is retired.
Show Result
Correct
- Your answer is correct.
Wrong
- Your answer is wrong.
Detailed Answer
Correct answer: (B)
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