Final answer:
The assertion that depreciation is always a period cost in external financial reporting for a manufacturing company is false.
Step-by-step explanation:
The statement that depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company is false. Depreciation related to manufacturing equipment or a factory is typically classified as a product cost, and it is included in the cost of goods sold as the assets are used to produce inventory. Only the depreciation of assets used in areas not directly involved in the production process (like office equipment) would be considered a period cost.
When discussing the measurement of the true cost of production in controlled price environments like China, it's a challenging issue. Governmental price controls can obscure the market's true valuation of goods and services, leading to difficulties in assessing production costs accurately. Anti-dumping cases, tariffs, and import quotas often arise from these market distortions when domestic industries appeal to government regulators, arguing that foreign competitors are selling goods at unfairly low prices, potentially harming local businesses.