The cost of an asset will typically include the purchase price and.
A) other expenditures on material and services to generate the asset.
B) depreciation costs of other assets used to generate the asset.
C) salaries and wages of the Chief Executive Officer.
D) All of the given answers.
E) other expenditures on material and services to generate the asset and depreciation costs of other assets used to generate the asset.

Question

Quizplus · Accepted Answer

The cost of an asset includes not only the purchase price but also other expenditures on material and services used to generate the asset, as well as depreciation costs of other assets used to generate the asset. Therefore, the correct choice is E. Choice A is too narrow, and choice C is irrelevant. Choice D is too broad and includes an irrelevant answer.

The Cost of an Asset Will Typically Include the Purchase