Which of the Following Costs Probably Should Not Be Allocated

question 95

Multiple Choice

Which of the following costs probably should not be allocated to the investment needed for a new project?

• A)increase in accounts receivable.
• B)new warehouse, built for this project.
• C)25 percent of the vice president's salary.
• D)labour expense for employees in new warehouse.

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Definitions:

Duress

Compulsion, force, or pressure to perform an act or make a decision against one's will.

Transfer

The act of moving or conveying property, title, or rights from one entity or person to another.

Negotiable Instrument

A document in writing that ensures the payment of a certain sum of money, either when requested or at a predetermined date, with the document explicitly naming the individual responsible for payment.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defects in the instrument and previous parties.