All of the Following Are Examples of Facility Sustaining Costs

question 192

Multiple Choice

All of the following are examples of facility sustaining costs except:

• A)Costs of cleaning the workplace.
• B)Costs of custodial work.
• C)Costs of personnel support.
• D)Costs of sampling product quality.
• E)Costs of employee recreational facilities.

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Definitions:

Extraordinary Item

A significant transaction or event that is both unusual and infrequent, no longer recognized in GAAP financial statements but was distinguished as having a major impact on a company's financial health.

Cost of Goods Sold

The Cost of Goods Sold (COGS) represents the direct expenses related to the production of goods sold by a company, including material and labor costs.

Purchase Discounts

A reduction in the price paid for goods or services, often provided by the seller to encourage prompt payment.

Freight-In

The cost associated with transporting goods to a company's location, which is typically included in the inventory cost of the purchased goods.