An example of operating costs of a long-lived asset would NOT include the following.
A) insurance costs paid after the asset is being used in operations
B) maintenance costs
C) repair costs
D) insurance costs paid before the asset is being used in operations

Question

Quizplus · Accepted Answer

Insurance costs paid before the asset is being used in operations are considered part of the asset's acquisition cost, not operating costs. Operating costs are expenses related to the day-to-day functioning of the asset once it is in use.

An Example of Operating Costs of a Long-Lived Asset Would