Allied Corp., a multinational corporation, has spent $500 million on a new data center that allows the firm to transform raw data into useful information at a very high speed. This enables the smooth functioning of the firm's operations. In this case, the cost that Allied Corp. has incurred is an example of _____.
A) retrieval cost
B) processing cost
C) acquisition cost
D) communication cost

Question

Quizplus · Accepted Answer

The cost incurred by Allied Corp. is an example of processing cost, as the company has invested in a data center to process raw data into useful information at a high speed.