Insurance Expense Incurred on a Factory Building Would Be Treated

question 130

Multiple Choice

Insurance expense incurred on a factory building would be treated as a

• A) direct cost
• B) period cost
• C) product cost
• D) selling cost

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Definitions:

Primary Objective Test

A rule that states a writing is not needed for enforcement if the promise to pay another party’s debt is made to obtain a gain for the guarantor.

Guarantor

The promisor.

Enforceable

A characteristic of a legal agreement or obligation that allows it to be legally upheld or compelled in a court of law.

Hyperlink

A digital reference or link from one document or webpage to another within the same or a different website.