Which Expense Below Would Not Be Considered Part of the Cost

question 45

Multiple Choice

Which expense below would not be considered part of the cost of a tangible long-lived asset?

• A) the price paid for the property, plant, and equipment when purchased from the manufacturer
• B) taxes paid on the purchase price of property, plant, and equipment
• C) commissions paid to the salesperson that sold the property, plant, and equipment
• D) repaving a driveway to the building where the property, plant, and equipment is housed

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Definitions:

Penalty

A financial charge imposed on an individual or entity for violating regulations or failing to comply with legal obligations.

Tax Due

The amount of tax owed to a government, typically determined after performing a calculation based on income and allowable deductions.

Social Security

A federal program in the United States that provides retirement benefits, disability income, and survivors benefits to eligible Americans.

Limit

The maximum amount, quantity, or level permitted, often used in financial contexts to describe caps on deductions, contributions, or benefits.