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3 years ago

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

Business

1 answer:

topjm [15]3 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

Which of the following is not true about the national income identity given by the equation: S +(T - G) = 1 + CA?

kati45 [8]

Answer:

None of the options are False.

Explanation:

CA means Current Account Balance

T means Taxes

G means Government Spending

S equals National Savings and

I equals Investment

Cheers!

4 0

3 years ago

Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 w

VikaD [51]

Answer:

Dr. Cr.

Work in progess 139,000

Salaries and wages payable account 139,000

Explanation:

Direct Labor are charges to work in progress account and a payble is created as a result.

Total Labor cost = $212,000

Indirect cost = $73,000

Direct labor cost = $212,000 - 73,000

Direct labor cost = $139,000

3 0

3 years ago

Read 2 more answers

The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present

Leno4ka [110]

A because it’s right idkk o think it’s right I honestly guessed

4 0

3 years ago

You want to start your own consulting business and believe it could produce cash flows of $5,600, $48,200, and $125,000 at the e

Inessa05 [86]

Answer:

This business idea worth $430,127 today

Explanation:

Today value of the future cash flows can be calculated by discounting the cash flows on the given discount rate. It is called the present value and sum of present value of all cash flows is called Net present value.

We use following format to calculate NPV for the given business idea

Years 1 2 3

Cash Flows $5,600 $48,200 $125,000

Sale Proceeds $450,000

Net Cash Flows $5,600 $48,200 $575,000

Discount Factor 14% 0.8772 0.7695 0.6750

Present values $4,912.32 $37,089.9 $388,125

Net present value of business idea = $4,912.32 + $37,089.9 + $388,125

NPV = 430,127.22

3 0

3 years ago

Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho

natima [27]

Answer:

$6.40

Explanation:

In this case, the predetermined overhead rate is calculated by dividing total manufacturing overhead expense by the total number of direct labor hours. The overhead expense is divided in two: fixed and variable. Predetermined variable overhead expense is $2.80 and predetermined fixed overhead expense = $36,000 / 10,000 direct labor hours = $3.60.

So the total predetermined overhead rate = $2.80 + $3.60 = $6.40

8 0

4 years ago