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Management · Q320

Management Accounting

Graduate and Post Graduate · Management · question 320

Q320

executive salaries, rent and other general administration cost in corporate costs are classified under

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

Answer: Option B

Solution

Answer: Option B
Solution:
Executive salaries, rent and other general administration cost in corporate costs are classified under corporate administration costs. Administrative expenses are costs related to the general administration of the business. This category of costs does not relate specifically to any business function such as production and sales. These costs are incurred at the corporate level, rather than by individual departments or business units.