Rock Crushers Limited Produces Smaller Rocks from Larger Rocks

question 114

Multiple Choice

Rock Crushers Limited produces smaller rocks from larger rocks.As part of the production process, Rock Crusher Limited takes the below listed actions.Which is a capital investment?

• A)Covering the payroll for their rock crushing technicians.
• B)Purchasing large rocks and crushing them into smaller rocks.
• C)Storing suitably crushed rock for future sales.
• D)Making interest payments on their bonds.

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Definitions:

Time-Driven Activity-Based Costing

A refinement of activity-based costing that estimates costs based on the time required to complete specific activities involved in manufacturing a product or providing a service.

Capacity Analysis

Identifying the necessary manufacturing capacity a business must have to respond to varying product demands.

Time-Driven Activity-Based Costing

A costing methodology that assigns costs to products or services based on the actual time spent on each activity, allowing for more accurate and dynamic cost assessments.

Customer Service Department

This department is responsible for providing assistance and advice to the customers of a company, handling inquiries, complaints, and support requests.