All of the following costs would be included when calculating equipment cost, except: Select one: a. Installation costs on new equipment. b. Insurance during transit on new equipment. c. Sales taxes paid on new delivery truck. O d. Motor vehicle licenses cost on delivery trucks.
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- Which two of the costs on the invoice for a new company car would be classified as expenditure charged to profit or loss Road tax Number plates Maintenance contract Delivery cost2. Which of the following costs would most likely be a discretionary fixed cost? A. The rent of the store. B. The depreciation of the equipment. C. Real estate tax. D. Advertising.p. What does Mazaya record as the cost of the new truck?
- which of the following should be included in the cost of equipment: (a) installation charges (b) freight charges (c) cost of building foundations (d) new parts needed to replace those damagedwhile unloading (e) borrowing costs incurred to finance the purchase of the equipment. Correct answer please ************solution****1. State whether each of the below is Capital Expenditure or Revenue Expenditure.a. Purchase of new delivery vehicleb. Payment of an invoice for advertisingc. Costs of clearing the site ready for an extension to the factory buildingd. Signwriting on the outside of the new delivery vehiclese. Redecoration of the officef. Payment of delivery driver’s wagesg. Fuel for delivery vehiclesh. Fitting of shelving in delivery vehicleTo what extent do you consider the following items to be proper costs of the fixed asset? Give reasons for your opinions. a. Overhead of a business that builds its own equipment. b. Cash discounts on purchases of equipment. c. Interest paid during construction of a building. d. Cost of a safety device installed on a machine. e. Freight on equipment returned before installation, for replacement by other equipment of greater capacity. f. Cost of moving machinery to a new location. g. Cost of plywood partitions erected as part of the remodeling of the office. h. Replastering of a section of the building. i. Cost of a new motor for one of the trucks.
- Classify each Direct or indirect cost a. Cost to lease (rent) railroad cars b. Cost of track and bed (ballast) replacement c. Diesel fuel costs d. Cost to lease (rent) train locomotives e. Depreciation of terminal facilities f. Maintenance costs of right-of-way, bridges, and buildings g. Salaries of dispatching and communications personnel h. Headquarters information technology support staff salaries i. Safety training costs j. Wages of train engineers k. Wages of switch and classification yard personnel I. Costs of accident cleanupIdentify which of the following is classified as a revenue expenditure a. Installation expense paid for fixing the machine b. Cost of purchase of Machine c. Expense incurred for repairing the machine d. Import duty paid for importing the machinIdentify which of the following is classified as a revenue expenditure a. Cost of purchase of Machine b. Expense incurred for repairing the machine c. Installation expense paid for fixing the machine d. Import duty paid for importing the machine
- An example of an uncontrollable cost would include all of the following except______. A. real estate taxes charged by the county in which the business operates B. per-gallon cost of fuel for the companys delivery trucks C. hourly rate of pay for the companys purchasing manager D. federal income tax rate paid by the companyWhich of the following costs are capitalized when purchasing a piece of equipment? a. The invoiced price of the equipment b. Sales taxes c. All installation costs related to the equipment d. All of the above(Multiple Choice Question) Casting Corp gets new equipment delivered to its factory. The cost of delivery is: 1. Debit to an asset account called Equipment Delivery 2. Recorded as Freight In 3. Debited to the Equipment account along with the purchase price of the equipment 4. Recorded as Delivery Expense