Which of the Following Types of Expenditures Is Not Subject

question 38

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 these are subject to capitalization under the UNICAP rules.

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Definitions:

Relevant Cost

refers to the costs that will be affected by a decision in the future and, thus, should be considered in decision-making processes.

Discounted Price

A reduced price offered on goods or services, usually for a limited time or under certain conditions.

Joint Product

Products that are generated simultaneously during the same manufacturing process but are of equal importance and value.

Common Input

A shared resource or material used in the production or manufacturing process across multiple products or services.