Into Which Two Major Functional Categories Are Costs Subdivided

question 158

Multiple Choice

Into which two major functional categories are costs subdivided?

• A) prime and conversion
• B) opportunity and direct
• C) selling and administration
• D) production and nonproduction

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Definitions:

Intangible Asset

An asset that lacks physical substance but is identifiable and provides economic benefits to the entity, such as patents, trademarks, and copyrights.

Fixed Asset

Long-term tangible property used in the operation of a business and not expected to be consumed or converted into cash in the near term.

Treasury Note

A medium-term government debt security with fixed interest rates and maturities typically between one and ten years.

Natural Resource

Assets that occur in nature, such as minerals, forests, water, and land, which can be utilized for economic benefit or commercial value.