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.
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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.
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