Which of the Following Would NOT Be Included in the Cost

question 95

Multiple Choice

Which of the following would NOT be included in the cost of an item of property, plant, and equipment?

• A) the purchase price net of any trade discounts and rebates
• B) delivery costs
• C) costs of training employees to use the asset
• D) costs of obligations associated with the asset's eventual disposal

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Definitions:

Interest Rate

The percentage of principal charged by the lender for the use of its money.

Budget Constraint

An economic model that outlines the combination of goods and services a consumer can purchase given their income and the prices of those goods and services.

Consumption

is the act of using goods and services to satisfy needs or desires, often discussed in the context of consumer behavior in economics.

Earnings

The amount of money received by an individual or organization in return for labor or services provided, or from investments.