To be charged to and reported as part of the cost of property,plant and equipment,an expenditure must be normal,reasonable,and necessary in preparing the asset for its intended use.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles, for an expenditure to be capitalized and reported as part of the cost of an asset, it must meet the criteria of being normal, reasonable, and necessary in preparing the asset for its intended use.

To Be Charged to and Reported as Part of the Cost