Final answer:
The cost of equipment consists of the cash purchase price plus certain related costs such as sales taxes and freight charges.
Step-by-step explanation:
The statement is true. The cost of equipment includes not only the cash purchase price but also other related costs such as sales taxes and freight charges.
These additional costs are necessary for acquiring and delivering the equipment to the business. For example, if a company purchases a manufacturing machine for $10,000 and incurs $500 in sales taxes and $200 in freight charges, the total cost of the equipment would be $10,700.