For the initial measurement of PPE which of the following elements contribute to the determination of the cost of an item? 1) Cost of testing if the asset is working properly 2) General expenses 3) Cost of site preparation 4) Operation reorganizational costs 5) Abnormal costs relating to acquisition, construction or installation 6) Installation and assembly costs   Select one: a. 1, 4 and 5 b. 1, 3 and 6 c. 2, 4 and 6 d. 1, 2 and 4

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 3CMA: In measuring the cost of quality, which one of the following is considered an appraisal cost? a....
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For the initial measurement of PPE which of the following elements contribute to the determination of the cost of an item?

1) Cost of testing if the asset is working properly

2) General expenses

3) Cost of site preparation

4) Operation reorganizational costs

5) Abnormal costs relating to acquisition, construction or installation

6) Installation and assembly costs

 

Select one:

a.

1, 4 and 5

b.

1, 3 and 6

c.

2, 4 and 6

d.

1, 2 and 4

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