Question

Which of the following expenses are NOT
added the Cost of fixed assets ?​

Answer 1

Answer:

Costs Not to Assign to a Fixed Asset are NOT added the Cost of fixed assets.

Explanation:

Costs incurred that are not required to bring the asset to the location and condition required for it to function. Operating losses at first. Costs of acquiring new customers Costs of establishing a new facility.

A fixed asset should not bear the following costs:

Costs of administration and general overhead.

Costs incurred after an asset has been prepared for use but has not yet been used or is not operating at full capacity.

Costs incurred that are not required to bring the asset to the location and condition required for it to function.

First-year operating losses.

Costs of acquiring new customers.

Costs of establishing a new facility.

Costs of launching a new product or service.

Costs of relocation or reorganisation.