Answer :
The cost at which a company records purchases of machinery and equipment should include all the under listed:
- Operating costs
- Purchase price
- Installation.
- Shipping fees
- Taxes
What is acquisition cost?
Acquisition cost refers to all the cost associated with the purchase of an asset. Â When calculating how a company records purchases of machinery and equipment, it should be the all inclusive cost of the equipment.
The cost acquisition cost should include :
- All transportation cost
- Installation cost
- Site preparation
- Sales or other taxes and testing costs prior to placing the equipment into production.
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