Question

The cost of manufacturing equipment would include all of the following except:

Entry field with correct answer
installation costs.
freight costs.
cost of training the equipment operator.
purchase price reduced by any discount taken.

Answer 1

The cost of manufacturing equipment would typically include purchase price, freight, and installation costs, but not the cost of training the equipment operator, which is an operational expense.

Step-by-step explanation:

The cost of manufacturing equipment includes various expenses that are necessary to make the equipment operational and functional within the production environment. These costs would typically include the purchase price of the equipment (less any discounts taken), as well as additional expenses like installation costs and freight costs, which are required to physically set up and transport the equipment to its operational location.

However, the cost of training the equipment operator would not be included in the cost of the manufacturing equipment itself, as this is considered an operational expense related to human resources, rather than a capital expenditure associated with the acquisition and set-up of the manufacturing equipment.