Which of the following expenses is NOT included in the acquisition cost of a plant and equipment?
Delivery and handling charges.
Installation costs.
Cost of site preparation.
Financing costs incurred subsequent to the period after plant and equipment is put to use.

Question

Which of the following expenses is NOT included in the acquisition cost of a plant and equipment?
Delivery and handling charges.
Installation costs.
Cost of site preparation.
Financing costs incurred subsequent to the period after plant and equipment is put to use.

Toppr Admin · Accepted Answer

The cost of equipment- vehicles- and furniture includes the-xA0-purchase-xA0-price- sales taxes- transportation-xA0-fees- insurance paid to cover the item during shipment- assembly- installation-xA0-Delivery and handling charges-xA0-and all other-xA0-costs-xA0-associated with making the item ready for use-

Which of the following expenses is NOT included in the acquisition cost of a plant and equipment?Delivery and handling charges.Installation costs.Cost of site preparation.Financing costs incurred subsequent to the period after plant and equipment is put to use.

The cost of equipment, vehicles, and furniture includes the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, Delivery and handling charges and all other costs associated with making the item ready for use.

Which of the following expenses is NOT included in the acquisition cost of a plant and equipment?
Delivery and handling charges.
Installation costs.
Cost of site preparation.
Financing costs incurred subsequent to the period after plant and equipment is put to use.