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

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Raymundo Castrellon · Accepted Answer

Final Answer : False, Explanation :  Depreciation on factory equipment is considered a product cost and included in the cost of goods sold, but depreciation on non-manufacturing assets (like office equipment) is treated as a period cost and expensed on the income statement in the period incurred.

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

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