Which of the Following Is NOT Included When Calculating the Depreciable

question 79

Multiple Choice

Which of the following is NOT included when calculating the depreciable basis for real property?

• A) freight charges for item
• B) sales tax paid for item
• C) financing fees
• D) installation and testing fees

---

Definitions:

Discontinuing Product

The process of ceasing the manufacture, sale, and support of a product line or brand.

Drag on Profits

Factors or expenses that reduce the overall profitability of a business.

Split-off Point

The stage in a manufacturing process where multiple products are derived from a single raw material or process, making the costs attributable to each product identifiable.

Avoidable Fixed Costs

Costs that can be eliminated if a particular business segment or operation is discontinued.