Mallory Technical Services obtained a new machine.Which of the following would not be included in the cost of the machine?
A)penalty for failure to obtain transport permit
B)cost of installation
C)cost of testing
D)invoice price

Question

Quizplus · Accepted Answer

Penalty for failure to obtain transport permit is not a direct cost associated with the acquisition of the machine. It is a result of not complying with legal requirements and therefore should not be included in the cost of the machine. The other options, including installation, testing, and invoice price, are all direct costs associated with acquiring and putting the machine into operation.

Mallory Technical Services Obtained a New Machine