Which of the Following Should Be Included in the Cost

question 175

Multiple Choice

Which of the following should be included in the cost of land?

• A) cost to build sidewalks on the land
• B) cost to clear the land of old buildings
• C) cost of installing signage
• D) cost of installing fences

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Definitions:

Useful Life

The expected period of time during which an asset is useful to the owner for the purpose for which it was acquired, often impacting depreciation calculations.

Preventive Maintenance

Scheduled maintenance activities aimed at preventing unexpected equipment failures and prolonging the life of the equipment.

Economic Value

The measure of the benefit provided by a good or service to an economic agent, often represented in terms of willingness to pay for it.

Service Hours

A measure of the amount of time spent providing services to customers, often used to allocate service department costs to producing departments.