Examveda

Sum of cost of direct materials, costs of buildings, equipment, research and development costs is classified as

A. throughput costs

B. investments

C. operating costs

D. marginal costs

Answer: Option B

Solution (By Examveda Team)

Sum of cost of direct materials, costs of buildings, equipment, research and development costs is classified as investments. An investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

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