Classify Each of the Following Costs Associated with Long-Lived Assets

question 108

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Freight costs paid on purchase of new equipment

• A)Buildings
• B)Machinery and equipment
• C)Land
• D)Land improvements

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Definitions:

Arbitrary

Decisions or actions taken without any reasonable, logical, or fair justification.

Capricious

Characterized by sudden changes in attitude or behavior without apparent reason; unpredictable.

Abuse Of Discretion

Abuse of discretion refers to a failure to take into proper consideration, the laws and facts relating to a particular matter; an arbitrary or unreasonable departure from precedent and settled judicial custom.

Administrative Agencies

Administrative agencies are government bodies responsible for the oversight and administration of specific functions, such as regulating industries and implementing laws.