Classify Each of the Following Costs Associated with Long-Lived Assets

question 62

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Fees paid to architect to design new office building

• A)Buildings
• B)Machinery and equipment
• C)Land
• D)Land improvements

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Definitions:

Machine Hours

Machine hours represent the total time a machine is operated within a specific period. This metric is often used in manufacturing to allocate costs based on machine usage.

Number Of Employees

The total count of individuals employed by a company, including both full-time and part-time workers.

Step-down Method

An allocation method used in cost accounting to distribute overhead costs from service departments to producing departments based on a hierarchy of service relationships.

Number Of Employees

The total count of individuals working for a company, including full-time, part-time, and temporary staff.