Skoot, an e-commerce startup company, recently paid $300,000 to Widget Corp., a company that provides Internet services and products including cloud computing and online searches, to gain access to the data regarding online product searches. In the context of the costs of useful information, it can be concluded that Skoot incurred _____.
A) processing cost
B) retrieval cost
C) storage cost
D) acquisition cost

Question

Quizplus · Accepted Answer

Skoot paid $300,000 to acquire access to the data, making it an acquisition cost. Processing, retrieval, and storage costs are associated with managing and using the data after it has been acquired, but they are not relevant to the initial purchase of the data.

Skoot, an E-Commerce Startup Company, Recently Paid $300,000 to Widget