Vidyalelo
Management · Q56

Management Accounting

Graduate and Post Graduate · Management · question 56

Q56

Sum of cost of direct materials, costs of buildings, equipment, research and development costs is classified as

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

Answer: Option B

Solution

Answer: Option B
Solution:
Sum of cost of direct materials, costs of buildings, equipment, research and development costs is classified as investments. An investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.