Final answer:
The cost of lettering on the side of the truck is not considered a part of the cost of a truck purchased for business use.
Step-by-step explanation:
The cost of a truck purchased for business use includes various components, but one item that is NOT typically considered a part of the cost is:
d. cost of lettering on the side of the truck.
When accounting for the cost of a business asset like a truck, generally accepted accounting principles (GAAP) dictate that the cost should include all expenditures necessary to acquire the asset and prepare it for its intended use. This typically includes the actual cost of the truck, freight charges (c), insurance during transit (a), and any fees associated with obtaining necessary licenses (b).
However, the cost of lettering on the side of the truck is considered a separate expense that is not capitalized as part of the truck's cost. Lettering is often viewed as a marketing or advertising expense rather than a direct cost of acquiring or preparing the truck for its business use. Therefore, it is treated as an operating expense and is not capitalized as part of the truck's cost on the balance sheet.