Question

Which of the following is included in the cost of constructing a building? a.cost of paving the parking lot b.insurance costs during construction c.cost of repairing vandalism damage during construction d.cost of removing the demolished building existing on the land when it was purchased

Answer 1

Answer:

b.insurance costs during construction

Explanation:

As we know that the building is come under the fixed assets whose life can be 10 years or more

So while constructing the building various cost is included i.e manufacturing cost which comprises of material, labor, and overhead

Plus, the insurance cost that is to be incurred during the construction period is also included

Hence, b option is correct