SEQ CHAPTER \H \R 1Which of the Following Expenditures Is

question 16

Multiple Choice

SEQ CHAPTER \h \r 1Which of the following expenditures is not capitalized as part of the cost of a capital asset acquired through a Capital Projects Fund?

• A) The retained percentage to insure proper completion of the construction by the contractor.
• B) Direct materials and labor that are used or consumed in the construction process.
• C) Interest expenditures on bond anticipation notes.
• D) Reimbursable overhead expenditures related to the construction project.

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Definitions:

Ordering Costs

Expenses associated with making an order for goods or services, including administrative costs, shipping charges, and time spent on ordering processes.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and obsolescence.

Gadgets

Small electronic or mechanical devices or tools that are innovative and designed for a particular purpose.

Significant Quantities

Items or entities in considerable amounts that are large enough to warrant attention or impact assessment.