Final answer:
The cost of a factory machine includes the invoice price less any discount, sales tax, insurance during shipping, and installation costs but does not typically include long-term insurance policies like a three-year insurance policy.
Step-by-step explanation:
The question is asking which item is not included in the cost of a factory machine. When accounting for the cost of a machine, companies typically include the invoice price less any discount taken, the sales tax, insurance during shipping, and costs associated with testing and installation. However, a long-term insurance policy, such as a three-year insurance policy on the machine, is usually considered a separate expense not included in the initial machine cost. This is because long-term insurance policies provide coverage over multiple accounting periods, whereas the initial cost should reflect expenses directly tied to the machine's acquisition and readiness for use.