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X factory outsources the manufacture of a major component to a contractor. The transportation of the component of X factory’s premises is borne by X. This transportation cost will be treated as ___________ cost (give the element of cost)

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Related Test: CMA Intermediate Exam: Cost Accounting


1. X factory outsources the manufacture of a major component to a contractor. The transportation of the component of X factory’s premises is borne by X. This transportation cost will be treated as ___________ cost (give the element of cost)





 
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