A Company Recently Ordered a Piece of Machinery from Germany

question 1

Multiple Choice

A company recently ordered a piece of machinery from Germany to be used to manufacture a new product.Which of the following are generally included as cost of an item of property,plant and equipment in accordance with AASB 116?
Purchase price
Import duties
Share of fixed overhead costs
Cost of marketing the new product

• A)
• \[\begin{array} { | c | c | c | c | }
• \hline \text { Purchase price } & \text { Import duties } & \begin{array} { c }
• \text { Share of fixed overhead } \\
• \text { costs }
• \end{array} & \begin{array} { c }
• \text { Cost of marketing } \\
• \text { the new product }
• \end{array} \\
• \hline \text { Yes } & \text { Yes } & \text { No } & \text { No } \\
• \hline
• \end{array}\].
• B)
• \[\begin{array} { | c | c | c | c | }
• \hline \text { Purchase price } & \text { Import duties } & \begin{array} { c }
• \text { Share of fixed overhead } \\
• \text { costs }
• \end{array} & \begin{array} { c }
• \text { Cost of marketing } \\
• \text { the new product }
• \end{array} \\
• \hline \text { Yes } & \text { Yes } & \text { Yes } & \text { Yes } \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | c | c | c | }
• \hline \text { Purchase price } & \text { Import duties } & \begin{array} { c }
• \text { Share of fixed overhead } \\
• \text { costs }
• \end{array} & \begin{array} { c }
• \text { Cost of marketing } \\
• \text { the new product }
• \end{array} \\
• \hline \text { Yes } & \text { Yes } & \text { No } & \text { No } \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | c | c | c | c | }
• \hline \text { Purchase price } & \text { Import duties } & \begin{array} { c }
• \text { Share of fixed overhead } \\
• \text { costs }
• \end{array} & \begin{array} { c }
• \text { Cost of marketing } \\
• \text { the new product }
• \end{array} \\
• \hline \text { Yes } & \text { No } & \text { Yes } & \text { Yes } \\
• \hline
• \end{array}\]

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Definitions:

Exclusive Representation

A situation where a single entity, such as a union, is authorized to represent and negotiate on behalf of all employees in a particular bargaining unit.

Majority Support

The condition where more than half of a group or constituency expresses approval or endorsement of a proposition or representative.

Culture

The customs, social behavior, and norms found in human societies.

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects the rights of employees to organize, engage in collective bargaining, and participate in concerted activities for mutual aid or protection.