Which of the following costs probably should not be allocated to the investment needed for a new project?
A)increase in accounts receivable.
B)new warehouse, built for this project.
C)25 percent of the vice president's salary.
D)labour expense for employees in new warehouse.

Question

Quizplus · Accepted Answer

Allocating a portion of the vice president's salary to the new project would not accurately reflect the direct costs associated with the investment needed for the new project. The other options directly relate to the expenses of the new project and would be appropriate to allocate to the investment needed.

Which of the Following Costs Probably Should Not Be Allocated