The sum of cost of direct materials, costs of buildings, equipment, research and development costs is classified as ___________?

Correct answer: B. investments

  • A. throughput costs
  • B. investments
  • C. operating costs
  • D. marginal costsSearch Public Records

Explanation

These costs are classified as investments because they represent resources committed to production capability and future benefits, including facilities, equipment, and research and development. Throughput costs relate to costs incurred to produce output, not this broader investment category.

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