The following costs arise in relation to production of a new product: (i)   Research and development costs (ii)  Design costs (iii) Quality check costs (iv)  Advertising costs (v) Manufacturing costs In calculating the lifetime costs of the product, which of the above items would be EXCLUDED?   a. (i), (ii), and (iii)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 2EA: For the following descriptions state whether the cost is controllable or uncontrollable by...
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The following costs arise in relation to production of a new product:

(i)   Research and development costs

(ii)  Design costs

(iii) Quality check costs

(iv)  Advertising costs

(v) Manufacturing costs

In calculating the lifetime costs of the product, which of the above items would be EXCLUDED?


 

a.

(i), (ii), and (iii) only

b.

(ii) and (iii) only

c.

(iv) and (v) only

d.

None of these to be excluded

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