Ownership Costs Are Incurred After the Initial Purchase and Are

question 59

Multiple Choice

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

• A) Financing costs
• B) Energy costs
• C) Taxes
• D) Maintenance and repair costs
• E) Supply network costs

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting principles that provide guidelines for financial reporting and are recognized globally.

Deferred Taxes

Deferred taxes are future tax liabilities or assets, reflecting the temporary differences between the accounting income and taxable income.

GAAP

Generally Accepted Accounting Principles are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements in the United States.

Capitalize

The accounting practice of recording a cost or expense on the balance sheet for purposes of delaying full recognition of the expense over time through depreciation or amortization.