Which of the following costs would be excluded from the acquisition cost of equipment purchased from a supplier?
A) Cost to install the equipment.
B) The cost of freight paid to get the equipment to our factory.
C) The cost to widen an entrance in the building to bring the equipment into the facilities.
D) A purchases discount offered by the supplier.

Question

Quizplus · Accepted Answer

The acquisition cost of equipment includes all costs necessary to get the equipment ready for its intended use, such as installation, freight, and modifications to the premises (like widening an entrance). A purchase discount, however, reduces the cost of the equipment and is not included in the acquisition cost.

Which of the Following Costs Would Be Excluded from the Acquisition