Question

Expenditure incurred on Wages, Rent, Interest, etc. are included in ____________.

• A. Accounting Cost
• B. Opportunity Cost
• C. Fixed Cost
• D. Direct Cost

Answer 1

The correct option is A Accounting Cost

$\Rightarrow$ Accounting cost is the recorded cost of an activity. An accounting cost is recorded in the ledgers of a business, so the cost appears in an entity's financial statements.

$\Rightarrow$ Cost accounting information is also commonly used in financial accounting, but its primary function is for use by managers to facilitate their decision-making.

These costs include the following:

Rent

Utility expenses

Food and entertainment expenses

Travel expenses, including transportation and hotels

Payroll expenses, including salaries and related payroll taxes

Supplies

Insurance

Any other expenses incurred during the normal course of business.

$\therefore$ Expenditure incurred on Wages, Rent, Interest, etc. are included in Accounting Cost.