When Salaries and Wages Are Capitalised as Part of the Costs

question 64

Multiple Choice

When salaries and wages are capitalised as part of the costs of an asset,such as inventory:

• A) An expense will never be recognised for the salaries and wages.
• B) An expense will only be recognised when the employee takes leave.
• C) An expense is recognised as part of the cost of the inventory.
• D) An expense is recognised immediately.
• E) An expense is finally recognised in the form of 'Cost of Goods Sold'.

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Definitions:

Early Growth

The initial phase of development in businesses or industries marked by rapid expansion and increase in market share or profitability.

Research And Development Trends

The prevailing directions or patterns in innovation, technological advancements, and product development efforts across industries.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Transportation Networks

Systems of interconnected routes and modes of transport facilitating movement of people and goods.