Which of the Following Types of Expenditures Is Not Subject

question 8

Multiple Choice

Which of the following types of expenditures is not subject to capitalization under the UNICAP rules?

• A)Selling expenditures
• B)Cost of manufacturing labor
• C)Compensation of managers who supervise production
• D)Cost of raw materials
• E)All of the choices are subject to capitalization under the UNICAP rules

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Definitions:

Cognitive Dissonance

is the psychological discomfort experienced when holding two or more contradictory beliefs, ideas, or values.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer is responsible for checking the quality and suitability of goods before a purchase is made.

Approach-Avoidance

A psychological conflict that occurs when a situation or objective has both desirable and undesirable aspects that make it simultaneously appealing and repelling.

Utilitarian

Describes products, services, or actions that are practical and functional rather than decorative or ornamental.