Which of the Following Is Included in the Cost of a Plant

question 143

Multiple Choice

Which of the following is included in the cost of a plant asset?

• A)amounts paid to make the asset ready for its intended use
• B)regular repair and maintenance cost
• C)replacement of damaged parts of the asset
• D)wages of workers who work with the asset

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Definitions:

Inventory

The total amount of goods and materials held by a company intended for sale or production.

Net Income

It represents the amount of money that remains after subtracting all operating expenses, taxes, and costs from total revenue – a key indicator of a company's financial health.

Long-Term Debt

Long-term debt refers to loans and financial obligations lasting more than one year, often used for significant investments or expenses by a company.