Indicate whether each of the following expenditures should be classified as:
-Cost of trial runs for machinery
A) land (L)
B) land improvements (LI)
C) buildings (B)
D) equipment (E)
E) none of these (X).

Question

Quizplus · Accepted Answer

Cost of trial runs for machinery is directly associated with preparing the equipment for its intended use, thus it should be classified under equipment (E).

Indicate Whether Each of the Following Expenditures Should Be Classified