Costs that may be included in the cost of acquisition of property, plant and equipment assets include: $$\begin{array} { | l | c | c | c | c | }
\hline & \text { I } & \text { II } & \text { III } & \text { IV } \
\hline \text { Site preparation } & \text { No } & \text { Yes } & \text { Yes } & \text { Yes } \
\hline \text { Initial delivery and hardling costs } & \text { No } & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { Installation and assernbly costs } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline \text { Testing whether the asset is functioning } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Question

Costs that may be included in the cost of acquisition of property, plant and equipment assets include: $$\begin{array} { | l | c | c | c | c | } 
\hline & \text { I } & \text { II } & \text { III } & \text { IV } \
\hline \text { Site preparation } & \text { No } & \text { Yes } & \text { Yes } & \text { Yes } \
\hline \text { Initial delivery and hardling costs } & \text { No } & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { Installation and assernbly costs } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline \text { Testing whether the asset is functioning } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Quizplus · Accepted Answer

Site preparation, initial delivery and handling costs, installation and assembly costs, and testing whether the asset is functioning properly are all costs that can be included in the cost of acquisition of property, plant, and equipment assets. Option III includes all these costs.

Costs That May Be Included in the Cost of Acquisition