Q.4) Below are the study cases referring specific type of cost involved, you are required to state the particular cost item against each case:

a) Mark is considering investing a large sum of money in a land that may be site for future store. Rather than investing the funds in land, company could invest the funds in high grade securities.

b) Excellence company had paid $ 30,000 several years ago for a special purpose machine. The machine was used to make product that is now obsolete in the market and is no longer saleable.