Question

Which of the following costs is not included in the cost of the machine r
Shipping costs for the machine
Costs of installing the machine
The costs of removing the machine
The costs of cutting were burned while installing the machine
All of them are included in the cost of the machine

Answer 1

Often companies purchase machinery or other equipment such as delivery or office equipment. Its cost includes:

• the seller’s net invoice price (whether the discount is taken or not),
• transportation charges incurred,
• insurance in transit,
• cost of installation,
• costs of accessories,
• and testing costs.
• Also included are other costs needed to put the machine or equipment in operating condition in its intended location.

The cost of machinery does not include removing and disposing of a replaced, old machine that has been used in operations. Such costs are part of the gain or loss on disposal of the old machine.

The Cost of removing the machine will not be included in Cost of machine.