Cost incurred in the activities necessary to get rid of an asset is called:
A)whole of life costs.
B)cost of disposition.
C)cost of owning.
D)cost of operation.

Question

Quizplus · Accepted Answer

Cost of disposition refers to the costs incurred in activities necessary to get rid of an asset, such as selling, scrapping, or donating it. Whole of life costs includes all costs associated with the asset over its entire lifespan, while cost of owning includes the costs of acquiring and holding the asset. Cost of operation refers to the costs incurred in using the asset on a day-to-day basis.

Cost Incurred in the Activities Necessary to Get Rid of an Asset