Which of the Following Expenditures Would NOT Be Included in the Cost

question 43

Multiple Choice

Which of the following expenditures would NOT be included in the cost of an asset?

• A)Freight costs
• B)Vandalism
• C)Sales tax
• D)Surveying fees

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Definitions:

FOB Destination

A shipping term indicating that the seller bears the shipping costs and retains ownership of the goods until they are delivered to the buyer's location.

Revenue Recognition

The accounting principle dictating the specific conditions under which revenue is recognized or accounted for.

Ownership Transfer

The process by which the title of property or assets is moved from one party to another, affecting legal rights and responsibilities.

Bank Service Charges

Fees charged by a bank for the various services it provides to its customers.