How Are Direct and Indirect Costs Accounted for When Applying $\begin{array} { cc } &&& \text { Direct Costs } &&&&&& \text { Indirect Costs } \\\end{array}$

question 9

Short Answer

How are direct and indirect costs accounted for when applying the acquisition method for a business combination? $\begin{array} { cc } &&& \text { Direct Costs } &&&&&& \text { Indirect Costs } \\\end{array}$
A) $\begin{array} { cc } &&& \text { Expensed } &&&&&&& \text { Expensed } \\\end{array}$
B) $\begin{array} { cc } & \text { Increase investment account } & \text { Decrease additional paid-in capital } \\\end{array}$
C) $\begin{array} { cc } & &&\text { Expensed } &&&&&&& \text { Decrease additional paid-in capital } \\\end{array}$
D) $\begin{array} { cc } & \text { Increase investment account } & \text { Expensed } \\\end{array}$
E) $\begin{array} { cc } & \text { Increase investment account } & \text { Increase investment account } \\\end{array}$

---

Definitions:

Sustainability Performance

An evaluation of how well a company or product manages its responsibilities towards the environment, economy, and society for long-term sustainability.

Natural Environment

Constitutes the biological and physical surroundings in which any given living organism exists, including air, water, soil, and other organisms.

Social Practices

Refers to the habitual, widely accepted behaviors, norms, and routines that shape the daily activities and interactions of people within a society or community.

Competitive Advantage

A condition that allows a company or organization to produce goods or services more effectively than competitors, leading to greater sales or margins.