Which of the Following Costs Related to the Purchase of Production

question 47

Multiple Choice

Which of the following costs related to the purchase of production equipment incurred by Lincoln Company during 2011 would be considered a revenue expenditure?

• A)Installation costs for equipment
• B)Purchase price of the equipment less the cash discount
• C)Repair and maintenance costs during the equipment's first year of service
• D)Transportation charges to deliver the equipment to Lincoln Company

---

Definitions:

Skinner

B.F. Skinner, an American psychologist and behaviorist, best known for his work on operant conditioning and behavior analysis.

Development Occurs

A phrase that signifies the process of growth, change, or progress in any aspect of biological, psychological, or physical entities.

Erikson

Erik H. Erikson was a developmental psychologist known for his theory on the psychosocial stages of human development.

Initiative

The ability to assess and initiate things independently, often the power or opportunity to act or take charge before others do.