An asset's cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.

Question

Quizplus · Accepted Answer

This is in accordance with the generally accepted accounting principles (GAAP). The cost of an asset includes all direct and indirect costs required to get the asset in place and ready for use. These costs can include purchase price, delivery, installation, testing, and any other costs necessary to make the asset ready for its intended use.

An Asset's Cost Includes All Normal and Reasonable Expenditures Necessary