Mount Company Purchased a Machine at an Invoice Cost of $26,000

question 61

Multiple Choice

Mount Company purchased a machine at an invoice cost of $26,000 subject to terms of 2/10, n/30. The discount was taken. Additional costs were installation, $1,200; insurance on the machine after it was in operation, $300. The total cost to be added to the machinery account is:

• A) $25,700.
• B) $26,680.
• C) $27,500.
• D) $27,200.

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Definitions:

Conformance

The act of matching or complying with certain standards, rules, or norms, often to meet requirements or maintain quality and consistency.

Service Characteristics

Service Characteristics are features that differentiate services from goods, including intangibility, inseparability, variability, and perishability.

Intangible

Lacking physical substance, often referring to things that cannot be touched but have value, like brand reputation or intellectual property.

Labor Intensive

Industries or processes that require a large amount of manual labor compared to the amount of capital used or investment in machinery.