Major Company purchased a piece of equipment.All of the following costs should be included in the cost of the equipment EXCEPT for:

Question

Quizplus · Accepted Answer

Insurance costs after the equipment is up and running are considered operating expenses and should not be included in the cost of the equipment. The other choices, insurance while in transit, wages of workers who test the equipment before it is placed in service, and employee training costs before the equipment is placed in service, are all necessary costs that are directly related to the acquisition and installation of the equipment, and should be included in its cost.

Major Company Purchased a Piece of Equipment