In corporate costs, the cost incurred to finance construction of new equipment are classified as ___________?

Correct answer: A. treasury costs

  • A. treasury costs
  • B. discretionary costs
  • C. human resource management costs
  • D. corporate administration costs

Explanation

Treasury functions manage financing and investment of funds, including financing the construction or purchase of new equipment. Human-resource and administration costs do not arise from arranging such finance.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? support@testustad.com

About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

Practise Cost Accounting

941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Accounting questions like this

Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Cost Accounting questions