Which of the following costs should not be included in the allocated costs of the project?
A)The wage costs related to producing the new product.
B)The cost of water and electricity connections in the new plant.
C)The portion of the cost of leasing the office space for the firm's human resources department.
D)The operating costs associated with the proposed new plant.

Question

Quizplus · Accepted Answer

The allocated costs of the project should only include costs that are directly related to the project itself. The portion of costs related to leasing the office space for the human resources department is not directly related to the project and should therefore not be included. The other options are costs that are directly related to the production of the new product and the proposed new plant, and should therefore be allocated to the project.

Which of the Following Costs Should Not Be Included in the Allocated