Question

Wht should be included in the acquisition cost of a piece of equipment?

Answer 1

A piece of equipment should include the required testing costs prior to placing the equipment into production , transportation costs should also be covered in the cost of the equipment, and finally, installation costs of the said equipment.

Answer 2

1. The testing cost before putting the equipment into production

2. The costs of transportation

3. The costs of installation

Step-by-step explanation:

An acquisition cost, also referred to as the cost of acquisition, is the total cost that a company made in the acquisition of an equipment. It shows the true amount that was paid for the acquisition of the equipment before sales tax was applied.

1. testing costs before putting the equipment into production

2. costs of transportation

3. costs of installation

Should be included in the cost of acquisition of a new equipment.