Which One of the Following Types of Costs Should Be

question 25

Multiple Choice

Which one of the following types of costs should be included in the cost of a manufactured inventory?

• A)abnormal spoilage
• B)production supervisory salaries
• C)interest costs
• D)selling costs

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Definitions:

Cost Of The Resource

The total financial investment required to acquire, maintain, and operate a resource over its useful life.

Depletion

The allocation of the cost of natural resources over their useful life, reflecting the consumption of the resource.

Metal Ores

Naturally occurring minerals from which metals can be extracted economically.

Amortization

Amortization refers to the process of gradually writing off the initial cost of an asset over a period.