Question

Allied Corp., a multinational corporation, has spent $500 million on a new data center that allows the firm to transform raw data into useful information at a very high speed. This enables the smooth functioning of the firm's operations. In this case, the cost that Allied Corp. has incurred is an example of _____.

Answer 1

The correct answer is: Processing cost.

Step-by-step explanation:

Processing cost is an accounting term that refers to collecting useful information of manufacturing costs of the units that are being produced. This approach is used in large entities where products are manufactured in masses and those units are almost identical or equal to ease the production process.