Costs Included in Assets
Eritrea Ltd Instructions
Which of These Costs Should Be Included in the Due

question 92

Essay

Costs included in assets
Eritrea Ltd. is expanding its operations. Due to the expansion, they incurred the following costs during the fiscal period when they constructed a new factory:

$\begin{array}{llcc} \text { Direct labour } & 70,000 \\ \text {Loan interest to finance expansion. } &3,000\\ \text {Architectural drawings } &15,000\\ \text { Purchase of company car for the new plant manager.} &44,000\\ \text { Direct material for factory } &81,000\\ \text { Allocation of overhead based on labour } &\\ \text { hours worked on factory } &58,000\\ \text { Imputed interest on lost opportunity costs} &9,000\\\end{array}$

Instructions
Which of these costs should be included in the cost of the new factory?

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Definitions:

Peripheral Nervous System

The portion of the nervous system that lies outside the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Motor Neurons

Nerve cells that originate in the brain or spinal cord and project their axons to muscle fibers, facilitating voluntary and involuntary movements.

Reticular Formation

A nerve network in the brainstem that plays an important role in controlling arousal.

Genital Sensations

Feelings or perceptions experienced in the genital area, often associated with sexual activity or arousal.