Fish Farm Corporation Purchases a New Tract of Land on Which

question 15

Multiple Choice

Fish Farm Corporation purchases a new tract of land on which it is going to build new growing and holding tanks in order to expand its business.Which of the following costs would not be part of the cost of the land?

• A) costs to run a title search
• B) costs of grading to level the land
• C) costs of tearing down an existing structure
• D) cost of the new holding tanks

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Definitions:

Cost from Theft

The financial impact incurred by a business due to pilferage, shoplifting, burglary, or other forms of theft.

Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, deterioration, and loss.

Material Cost

The expense associated with raw materials and components needed for producing a product.

Average Flow Time

The average time that units spend in a production system, from arrival to departure, indicating the efficiency of the process.