A Company Recently Bought a New Production Machine and Has

question 4

Multiple Choice

A company recently bought a new production machine and has incurred the following costs.All of the costs can be included in the cost of the asset except?

• A)Interest expense on the loan to finance the purchase after the asset is put into use.
• B)Freight, taxes and duties.
• C)Installation costs.
• D)Cost of training personnel to use the machine.

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Definitions:

Avoidance-Avoidance Conflict

A psychological conflict that arises when an individual must choose between two equally unattractive options or actions.

Undesirable Routes

Pathways or approaches that are not preferred or desirable due to various reasons such as inefficiency or risk.

Approach-Avoidance Conflict

A psychological conflict that occurs when a goal is both appealing and unappealing at the same time, leading to ambivalence.

Positive and Negative Aspects

Factors or elements of a situation, decision, or phenomenon that can be beneficial (positive) or detrimental (negative).