All categories

2 years ago

Which of the following should be included in the acquisition cost of a piece of equipment?

Business

1 answer:

topjm [15]2 years ago

6 0

Answer: All of these choices are correct.

Explanation:

You didn't give the options to the question. The options include:

testing costs prior to placing the equipment into production

transportation costs

installation costs

All of these choices are correct.

Acquisition cost, is the total cost that is recognized by a company on its books for the purchase of an asset. These costs include the transportation cost, installation cost, shipping cost, testing costs, sales taxes, customs fees, etc.

Therefore, based on the explanation, the correct option is All of the choices are correct.

You might be interested in

Stevens Clothing Company has four warehouses spread throughout the country. The company is considering building another warehous

Maslowich

Answer:

894 shirts

Explanation:

to calculate new average inventory levels we can use the following formula:

average inventory levels = [(√new number of warehouses / √current number of warehouses) x current inventory level] / new number of warehouses

= [(√5 / √4) x 4,000] / 5 = [(2.236 / 2) x 4,000] / 5 = (1.118 x 4,000) / 5 = 4,472.14 / 5 = 894.4 ≈ 894 shirts

6 0

3 years ago

A small group characterized by intimate, long-term, face-to-face association and cooperation is a(n) __________. primary group r

uysha [10]

Answer:

The correct answer is letter "A": primary group.

Explanation:

Primary groups are the basis of societies. They are small groups of people in which their members come into direct contact. Primary groups are represented by families that where individuals learn how to be appreciated and loved. Primary group members share enduring relationships.

8 0

3 years ago

Wallace Container Company issued $100 par value preferred stock 10 years ago. The stock provided a 7 percent yield at the time o

pshichka [43]

Answer: kp = D/Po

D = 0.07 X $100 = $7

kp = 7/63

kp = 11.11%

Explanation: The dividend paid on the preferred stock is 7 percent of the par value and the current market price is $63. Thus, the cost of preferred stock can be obtained by dividing the dividend paid by the current market price of the preferred stocks.

3 0

2 years ago

A bookstore organizes its stock by topic. It has a mystery novel section, a romance novel section, a how-to-do-it section, a tra

ANEK [815]

Answer:

The correct answer is the second option: Item usage book cover.

Explanation:

To begin with, in the field of business management that focus specifically in the bookstores when they talk about an "item usage book cover" presentation it means that the managers decide to organize the stock by topic and that is related to the book cover and therefore to its item so that is why that they would have a mystery novel section, a romance novel section and much more of that. So every customer will understand inmediately that the bookstore is structured by the item of the book that could be easily recognize sometimes with its cover.

8 0

2 years ago

A golf ball manufacturer gives us its data for the year: WIP Inventory, January 1 Units started Units completed and transferred

N76 [4]

Answer:

c. $10,106 if taken separately for Direct Material or Conversion Costs

Or None of these as total cost is $ 10,779+$ 10,081= $20860 for units transferred out

Explanation:

Units % of Eq. Units

Completion D.M Conversion

Units completed and

transferred out 6,400 units 100% 6400 6400

WIP Inventory, 3,100 units 90%,60% 2790 1860

December 31

<u>Total Units to account for 9190 8260</u>

Direct materials $15,478

Direct labor $7,400

Manufacturing Overhead $5,611

Direct Material Cost per unit= $ 15478/9190= $ 1.684

Conversion Cost per unit= $13011 / 8260= 1.575=$ 1.58

Direct Material Cost for Completed units = 6400 * $1.684= $ 10,779

Conversion Cost for Completed units = 6400 *1.575= $ 10,081

6 0

3 years ago