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Management · Q41

Management Accounting

Graduate and Post Graduate · Management · question 41

Q41

Cost operations such as wages, salaries, depreciation, utilities and rent are summed together to calculate

A.
throughput costs
B.
investments
C.
operating costs
Answer
D.
marginal costs

Answer: Option C

Solution

Answer: Option C
Solution:
Cost operations such as wages, salaries, depreciation, utilities and rent are summed together to calculate operating costs. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.