Within the accounting system of a group of companies, the following types of expenses are incurred. Complete the following table by placing each expense in the correct cost classification. Reference Number Types of expenses 1 Costs of opening a new facility 2 Costs of conducting business in a new location or with a new class of customer (including costs of staff training) 3 Costs of site preparation 4 Costs of testing whether the asset is functioning properly 5 Electrical installation costs 6 Costs of dismantling and removing the item and restoring the site on which it is located 7 Administration costs 8 Import duty of an imported machine 9 Purchase of a five-year maintenance contract with plant 10 Legal fees for sales and purchase agreement for acquisition of land 11 Interest on loan on a self constructed property after the asset is ready for use 12 Architect fees incurred for self constructed building 13 General overheads incurred for self constructed building 14 Commission paid for disposal of property 15 Cost relating to formal opening of new factory 16 Direct labour cost for construction of buildings
Within the accounting system of a group of companies, the following types of expenses are incurred. Complete the following table by placing each expense in the correct cost classification. Reference Number Types of expenses 1 Costs of opening a new facility 2 Costs of conducting business in a new location or with a new class of customer (including costs of staff training) 3 Costs of site preparation 4 Costs of testing whether the asset is functioning properly 5 Electrical installation costs 6 Costs of dismantling and removing the item and restoring the site on which it is located 7 Administration costs 8 Import duty of an imported machine 9 Purchase of a five-year maintenance contract with plant 10 Legal fees for sales and purchase agreement for acquisition of land 11 Interest on loan on a self constructed property after the asset is ready for use 12 Architect fees incurred for self constructed building 13 General overheads incurred for self constructed building 14 Commission paid for disposal of property 15 Cost relating to formal opening of new factory 16 Direct labour cost for construction of buildings
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 23DQ
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Within the accounting system of a group of companies, the following types of expenses are incurred.
Complete the following table by placing each expense in the correct cost classification.
| Reference Number | Types of expenses |
| 1 | Costs of opening a new facility |
| 2 | Costs of conducting business in a new location or with a new class of customer (including costs of staff training) |
| 3 | Costs of site preparation |
| 4 | Costs of testing whether the asset is functioning properly |
| 5 | Electrical installation costs |
| 6 | Costs of dismantling and removing the item and restoring the site on which it is located |
| 7 | Administration costs |
| 8 | Import duty of an imported machine |
| 9 | Purchase of a five-year maintenance contract with plant |
| 10 | Legal fees for sales and purchase agreement for acquisition of land |
| 11 | Interest on loan on a self constructed property after the asset is ready for use |
| 12 | Architect fees incurred for self constructed building |
| 13 | General |
| 14 | Commission paid for disposal of property |
| 15 | Cost relating to formal opening of new factory |
| 16 | Direct labour cost for construction of buildings |
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