Which of the following mostly likely would be classified as restructuring costs?
A) Advertising costs to sell a product recently developed by a company.
B) Severance pay for employee layoffs associated with facility closings.
C) Brokerage fees from the issuance of additional shares of stock.
D) Acquisition fees associated with the purchase of land and buildings.

Question

Quizplus · Accepted Answer

Restructuring costs are expenses that a company incurs when it makes significant changes to its operations, such as downsizing or closing facilities. Severance pay for employee layoffs associated with facility closings would be considered a restructuring cost. The other options (advertising costs, brokerage fees, and acquisition fees) are not related to restructuring and would not be classified as such.

Which of the Following Mostly Likely Would Be Classified as Restructuring