The total cost of obtaining an asset,including such costs as purchase price,transportation,installation,testing,and calibrating in order to ready it for its first productive use is termed as _____.
A) replacement cost
B) cost of operating
C) cost of disposition
D) acquisition cost

Question

Quizplus · Accepted Answer

The term "acquisition cost" refers to the total cost required to obtain an asset and make it productive. This includes all costs related to the acquisition process such as purchase price, freight and transportation fees, installation costs, testing, and calibration expenses, among others. It does not include the cost of operating the asset or disposing of it later.

The Total Cost of Obtaining an Asset,including Such Costs as Purchase