The direct cost incurred in using an asset for the purpose for which it was intended is called:
A)cost of disposition.
B)cost of owning.
C)whole of life cost.
D)cost of operating.

Question

Quizplus · Accepted Answer

The cost incurred in using an asset for the purpose for which it was intended is called the cost of operating. This includes expenses related to maintenance, repairs, fuel, and other operating costs. Options A and B are not applicable as cost of disposition refers to the costs of disposing of an asset and cost of owning refers to the total cost of owning an asset over its useful life. Option C refers to the total cost of owning and operating an asset over its useful life.

The Direct Cost Incurred in Using an Asset for the Purpose