Asked by isabella hernandez on Jul 03, 2024
Verified
Which one of the following types of costs should not be included in the cost of a building?
A) costs of remodeling and reconditioning
B) excavation costs
C) unanticipated costs resulting from the condition of the land
D) unanticipated construction costs, such as strike or fire losses
Unanticipated Costs
Expenses that were not planned or predicted in the budgeting process, often leading to budget overruns.
Remodeling
The process of making improvements or alterations to a building's structure or design, often to update or increase its value.
Excavation Costs
Expenses associated with the removal of earth to make way for construction or mining operations.
- Pinpoint and keep a record of the procurement cost for assets, production facilities, and machinery.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
D
Explanation :
Unanticipated construction costs, such as strike or fire losses, are not expected and therefore cannot be included in the initial cost of the building. The other options, costs of remodeling and reconditioning, excavation costs, and unanticipated costs resulting from the condition of the land, are all anticipated costs that would be factored into the total cost of the building.
Learning Objectives
- Pinpoint and keep a record of the procurement cost for assets, production facilities, and machinery.
Related questions
The Debit for a Sales Tax Paid on the Purchase ...
Randal's Rifles Purchased Some Equipment by Issuing a Three-Year 6 ...
On April 1, 2010, Richer Corporation Purchased a New Machine ...
The Roth Company Incurred the Following Costs in the Acquisition ...
A Company Purchased Land with a Building for a Total ...