Question

Which of the following should be included in the acquisition cost of a piece of equipment?

a. transportation costs
b. installation costs
c. testing costs prior to placing the equipment into production
d. all are correct

Answer 1

The correct answer is choice d, all are correct.

When calculating the acquisition cost of a piece of equipment it should be the all inclusive cost of the equipment. The cost should include all transportation, installation, site preparation, sales or other taxes and testing costs prior to placing the equipment into production.