Asked by Radhika Pande on Jul 23, 2024
Verified
Costs that may be included in the cost of acquisition of property, plant and equipment assets include: I II III IV Site preparation No Yes Yes Yes Initial delivery and hardling costs No Yes Yes No Installation and assernbly costs No No Yes Yes Testing whether the asset is functioning No No Yes Yes \begin{array} { | l | c | c | c | c | } \hline & \text { I } & \text { II } & \text { III } & \text { IV } \\\hline \text { Site preparation } & \text { No } & \text { Yes } & \text { Yes } & \text { Yes } \\\hline \text { Initial delivery and hardling costs } & \text { No } & \text { Yes } & \text { Yes } & \text { No } \\\hline \text { Installation and assernbly costs } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \\\hline \text { Testing whether the asset is functioning } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \\\hline\end{array} Site preparation Initial delivery and hardling costs Installation and assernbly costs Testing whether the asset is functioning I No No No No II Yes Yes No No III Yes Yes Yes Yes IV Yes No Yes Yes
A) I.
B) II.
C) III.
D) IV.
Site Preparation
The process of making a piece of land suitable for construction or other specific purposes, including clearing, grading, and installing foundational infrastructure.
Delivery Costs
Expenses associated with the distribution or transport of goods from the manufacturer or warehouse to the end customer.
Installation Costs
The expenses incurred to put an asset into operation and prepare it for use, including costs of setting up, assembling, and installing.
- Maintain records of acquiring and disposing of property, plant, and equipment, encompassing the related journal entries.
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Learning Objectives
- Maintain records of acquiring and disposing of property, plant, and equipment, encompassing the related journal entries.
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