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    Question

      If the depreciation on machinery kept in the factory is charged, which among the following will go up?

    A Factory Cost Correct Answer Incorrect Answer
    B Cost of Goods Available for Sale Correct Answer Incorrect Answer
    C Cost of Goods Sold Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Depreciation in the question is related to factory overheads and will increase factory cost which in turn will increase the Cost of goods available for sale and the COGS. 

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