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

---

Definitions:

Overjustification Effect

The phenomenon in which rewarding a person for performing an activity actually decreases their intrinsic motivation to perform that activity.

Externality Hypothesis

A theory suggesting that individuals attribute their success to internal factors and failures to external factors, often explored within the context of social psychology and self-perception.

Principle Homeostasis

The regulatory principle that organisms maintain a stable internal environment despite external changes.

Hierarchy Needs

A theory in psychology, proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which form a hierarchy.