The cost of an asset will typically include the purchase price and:
A) other expenditures on material and services to generate the asset.
B) depreciation costs of other assets used to generate the asset.
C) salaries and wages of the Chief Executive Officer.
D) other expenditures on material and services to generate the asset and depreciation costs of other assets used to generate the asset.

Question

Quizplus · Accepted Answer

The cost of an asset includes not only the purchase price but also other expenditures on material and services to generate the asset as well as depreciation costs of other assets used to generate the asset. Therefore, choice D is the correct answer. The salaries and wages of the Chief Executive Officer are not included in the cost of an asset.

The Cost of an Asset Will Typically Include the Purchase