Question

Which of the following is NOT a cost typically associated with owning a car?

Answer 1

Option (C) is correct.

Wear and tear cost is not typically associated with owning a car.

Further Explanation:

The cost associated with owning a car: When a person purchases a car, he has to incur all the expense related to the car. The general expenses that are related to car are fuel, insurance, maintenance and interest on the car loan.

Wear & tear fee is not typically associated with owning a car because it is an unavoidable expense. The wear & tear happens due to the passage of time and usage of the asset. The productivity of the car would not be affected if this cost is not incurred by the owner of the car. On the other hand, if the owner of the car does not incur fuel cost, insurance cost, and maintenance cost, the productivity of the car would be affected.  

Justification for the correct and incorrect options:

A.

Fuel: This is an incorrect option.

The fuel cost is required as the car cannot operate without fuel.

B.

Insurance: This is an incorrect option.

If the car is not insured, then the owner has to bear the heavy loss in case of theft, fire, and accident.

C.

Wear & tear fee: This is the correct option.

The car can operate effectively if the owner does not incur wear & tear.

D.

Insured: This is an incorrect option.

If the owner of the car will not incur maintenance expenses then it will affect the efficiency of the car.

Learn more:

Learn more about owning a car

brainly.com/question/2731676

Learn more about the  car insurance

brainly.com/question/6075135

Learn more about the purchase and lease of the car

brainly.com/question/1258129

Answer details:  

Grade: High School

Subject: Accounting

Chapter: Property, plant and equipment

Keywords: Ownership of car, cost associated, following, not a cost, owning a car, fuel, insurance, wear & tear fees, maintenance, cost, expenses, expenses related to the car, property, plant and equipment.

Answer 2

Correct answer choice is:

C: Wear and tear fees

____________________________________________________________

Explanation:

Wear and tear is a loss that spontaneously and unavoidably happens as a consequence of natural wear or aging. It is practiced in a legitimate connection for such fields as guarantee commitments from corporations, which normally specify that suffering from wear and tear will not be incorporated. Rental car cost levied on transport use exceeding what is deemed rational (but never defined). It customarily includes both outside damage (such as dents and scrapes) and internal deterioration (such as filling spots). Also described extreme wear and use charge.