The ABC, a computer manufacturing organization, is using building “ALFA–I” as manufacturing department while building “ALFA–II” for its administrative work. As a “Manager Accounts”, you are required to advice to the Accountant of the organization with logical reason regarding the treatment of depreciation of the building “ALFA–I” as direct or indirect manufacturing expense.
Also explain to him that in which heads of the “Income Statement” the depreciation of “ALFA-1” and “ALFA–II” will be reported.

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