Which depreciation example is listed under Selling Expenses for a store asset?

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Multiple Choice

Which depreciation example is listed under Selling Expenses for a store asset?

Depreciation is categorized by the function the asset serves. When an asset is used directly in the selling activities of a store, its depreciation is recorded as a selling expense. A store asset—like fixtures, displays, or cash registers—helps generate sales, so its depreciation reduces selling-related profits and sits with selling expenses. The other options align with different functions: office depreciation supports administrative costs, factory depreciation relates to manufacturing costs, and a delivery van is tied to distribution and delivery activities rather than the store’s selling environment. Since the item specifies a store asset, depreciation for that asset belongs under Selling Expenses.

Depreciation is categorized by the function the asset serves. When an asset is used directly in the selling activities of a store, its depreciation is recorded as a selling expense. A store asset—like fixtures, displays, or cash registers—helps generate sales, so its depreciation reduces selling-related profits and sits with selling expenses.

The other options align with different functions: office depreciation supports administrative costs, factory depreciation relates to manufacturing costs, and a delivery van is tied to distribution and delivery activities rather than the store’s selling environment. Since the item specifies a store asset, depreciation for that asset belongs under Selling Expenses.

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