Which of the Following Is NOT Included in the Cost

question 47

Multiple Choice

Which of the following is NOT included in the cost of a building that was constructed by the company?

• A)interest on money borrowed to finance the construction
• B)cost of removing an unwanted building from the property
• C)architectural fees
• D)payments for material,labor and overhead for construction of new building

Enhance analytical skills by interpreting the implications of different financial ratios.

Gain proficiency in distinguishing between liquidity, profitability, and solvency ratios.

Understand the impact of trust and listening on organizational communication.

Recognize the limitations and challenges of communication mediums and strategies.

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Definitions:

Postponement

A strategy where the final assembly or customization of a product is delayed until the latest possible time to reduce inventory costs and respond to customer demand more precisely.

Backward Integration

A type of vertical integration where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain.

Horizontal Integration

A strategy where a company acquires or merges with other companies at the same level of the supply chain in the same or different industries, to increase market share or product offerings.

Purchasing Savings

Cost reductions achieved by negotiating lower prices or finding more efficient procurement methods.