Depreciation is based on the asset cost plus all of the following except
A)shipping costs
B)increase in inventory
C)installation
D)cost of attached equipment acquired at the same time

Question

Quizplus · Accepted Answer

Depreciation is based on the asset cost plus associated costs such as shipping, installation, and the cost of attached equipment acquired at the same time. However, an increase in inventory is not an associated cost and does not affect the depreciation calculation.

Depreciation Is Based on the Asset Cost Plus All of the Following