Question

What original costs are involved in purchasing an asset and putting it into use?

Choose 3 answers

A. Storage
B. Spare parts
C. Lease
D. Delivery
E. Maintenance

Answer 1

The original costs involved in purchasing an asset may include delivery, spare parts, and lease expenses.

Step-by-step explanation:

The original costs involved in purchasing an asset and putting it into use typically include various expenditures. The costs to consider for this purpose might include:

• Delivery: The cost of transporting the asset from the seller to the buyer's location.
• Spare parts: Additional components that may be required for the installation or operation of the asset.
• Lease: If the asset is a space, like a factory or a retail area, there is a cost associated with securing the lease.

It's important to note that maintenance and storage generally occur after the asset is in use, so they are not typically considered original costs of acquisition.