Indicate whether each of the following expenditures should be classified as:
-Material and labour costs incurred to construct factory
A)land (L)
B) land improvements (LI)
C) buildings (B)
D) equipment (E)
E) none of these (X)

Question

Quizplus · Accepted Answer

The costs incurred to construct a factory are directly associated with the building itself, thus they are classified as buildings (B).

Indicate Whether Each of the Following Expenditures Should Be Classified