Fuine Corp., a multinational corporation, has spent $1 billion on a new data center that allows the firm to manage and transform raw data into useful information at a very fast speed. This enables the smooth functioning of the firm's operations. In this case, the cost that Fuine Corp. has incurred is an example of _____.
A) processing cost
B) retrieval cost
C) acquisition cost
D) communication cost

Question

Quizplus · Accepted Answer

The cost incurred by Fuine Corp. for the data center is a processing cost, as it involves transforming raw data into useful information.