Which of the following types of expenditures is not subject to capitalization under theUNICAP rules?

Question

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Selling expenditures are not subject to capitalization under the UNICAP rules. The UNICAP rules (Uniform Capitalization) require certain direct and indirect costs to be capitalized (added to the basis of inventory) rather than expensed when incurred. These costs include direct materials, direct labor, and indirect expenses, such as factory administration and rent. However, selling expenditures, such as advertising and promotion costs, are not included in the list of capitalized costs under the UNICAP rules.

Which of the Following Types of Expenditures Is Not Subject