What Value Will Be Reported for the Land on the Balance

question 43

Multiple Choice

What value will be reported for the land on the balance sheet?

• A) $370,000
• B) $1,100,000
• C) $323,000
• D) $760,000

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Definitions:

Direct Material Cost

The expense of basic materials and parts directly utilized in manufacturing a product.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.

Opportunity Cost

The cost of forgone alternatives when one option is chosen over another.

Administrative Expense

Costs related to the general operation and administration of a business, including salaries of executive personnel, office supplies, and utilities.