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:

Manual Labor

Work that requires physical activity and is often of a strenuous nature, typically not requiring a high level of education.

Day Labor

Work hired and paid for on a daily basis, often manual labor performed by individuals who are temporarily employed.

Whig Party

A political party in the United States during the mid-19th century that was opposed to the policies of the Democratic Party and supported modernization and economic protectionism.

Nationalism

A political ideology that emphasizes loyalty, devotion, or allegiance to a nation and strong identification with one's country and culture, often prioritizing national interests over global ones.