ECONOMICS

Detailed explanation-1: -The depreciation on the office furniture of the company president is considered as a period cost and is treated as a general, selling and administrative expense because the said space is not directly used in the production process.

Detailed explanation-2: -Depreciation can be categorized as a general, administrative, or selling expense based on the nature and type of expense. Depreciation on office and general staff equipment assets is classified as an administrative expense.

Detailed explanation-3: -Since the asset is part of normal business operations, depreciation is considered an operating expense.

Detailed explanation-4: -Examples of general and administrative (G&A) expenses include building rent, consultant fees, depreciation on office furniture and equipment, insurance, supplies, subscriptions, and utilities.

Detailed explanation-5: -Administration expenses are the costs of paying wages and salaries and providing benefits to non-sales personnel. They are one of three kinds of expense that make up a company’s operating expenses.