Which of the following expenditures would NOT be included in the cost of an asset?
A)Freight costs
B)Vandalism
C)Sales tax
D)Surveying fees

Question

Quizplus · Accepted Answer

Expenditures that are not necessary for the acquisition and preparation of an asset, or that do not increase its usefulness, are not included in the cost of the asset. Vandalism is not a necessary expenditure for acquiring or preparing an asset and does not increase its usefulness, so it would not be included in the cost of the asset. Freight costs, sales tax, and surveying fees are typically necessary expenditures for acquiring and preparing an asset and would be included in the cost of the asset.

Which of the Following Expenditures Would NOT Be Included in the Cost