Which of the following would be the most appropriate basis for allocating the costs of plant insurance that covers equip-ment theft and damage? a. Direct labor hours.b. Value of equipment.c. Machine hours.d. Square feet of plant space.

Q: Which of the following costs is irrelevant to replacement analysis? a. Operating cost of the…

A: Introduction:- Irrelevant costs are costs, either positive or negative. Which would not be affected…

Q: In any construction project, the total bill to the owner must equal a. Gross profit b. Net profit c.…

A: The construction contract accounting is the accounting system suitable for businesses engaged in…

Q: Classify each of the following costs as either a research expense or as an intangible asset.…

A: In the given question we have asked to classify the above cost which are as below.

Q: Which one of the following accounts is an asset similar to work-in-process inventory? Group of…

A: An asset refers to the resource of the business that can be utilized for the purpose of revenue…

Q: Which of the following cost includes determining how much to order, cost of invoices, clerical labor…

A: Sunk cost refers to money that has already been spent and which can not be recovered. Sunk costs are…

Q: Preparing an asset for sale after its useful life is a: a. Maintenance support cost b. Production…

A: Introduction: Cost Accounting: Cost Accounting is for Internal users. For determining costs of the…

Q: To what extent do you consider the following items to be proper costs of the fixed asset? Give…

A:

Q: Which of the following items should be accounted for as a capital expenditure?a. The monthly rental…

A: capital expenditure: It is the funds used by the company to acquire fixed assets such as…

Q: How does the materials requisition help safeguard a company’s assets?

A:

Q: Why do we include all the incidental charges relating to the acquisition of a machine in its cost?

A: When a machine is acquired, it needs to be capitalized as fixed assets and depreciation needs to be…

Q: The cost of insurance on the plant building Product Cost O Period Cost

A: Costs that a company incurs for manufacturing a product that will be sold to the consumer are known…

Q: State and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental…

A: Theory of constraints is a method which was used to identify the constraints which is a key limiting…

Q: Cost to construct a plant includes the contract price, architect's fees, building fees, excavation…

A: The interest cost that is occured to finace the long term project is capitalized until the project…

Q: The cost of fire insurance for a manufacturing plant is generally considered to be a:     period…

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…

Q: What is the cost of the building? What is the cost of machinery and equipment?

A: Capitalisation of fixed assets means how much cost incurred for the acquisition of long term fixed…

Q: Estimate the average total estimated useful life of depreciable property, plant, and equipment. Does…

A: Plant, property and Equipment refers to the tangible asset of the firm. Any tangible asset have a…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

A:

Q: All of the following costs would be included when calculating equipment cost, except: Select one: a.…

A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…

Q: Which of the following is considered capital expenditure Select one: a. Research expenses. b.…

A: Capital expenditure means those expenditure which are to be capitalized in books of accounts i.e.…

Q: Which of the following is a facility-level activity? O Engineering changes O Product design O…

A: Facility-level activity refers to tasks or operations that are necessary to support the overall…

Q: The cost of supplies (materials) used to test new equipment would be debited to which of the…

A: The correct answer is:d. Machinery and EquipmentExplanation:The cost of supplies (materials) used to…

Q: Which of these costs are taken as a part of cost of assets?   I. Invoice price II. Transportation…

A: Invoice price is the price at which the asset is purchased from the manufacturer or retailer of the…

Q: Understand property, plant, and equipment and its related costs.

A: Business have several assets such as cash, inventories, accounts receivables, investments, PPEs…

Q: What is the process of allocating the cost of a plant asset over its useful life called?

A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…

Q: The write-off of the cost of plant and equipment is called a.amortization. b.depletion.…

A: When the tangible asset are write-off then it is called as depreciation.

Q: What amount should be used as the cost basis of the equipment?

A: Property, plant and equipment:   Property, plant and equipment are the tangible assets which are…

Q: Which of the following items shall not be capitalized into the cost of property, plant, and…

A: IAS 16 Property, Plant and Equipment covers the accounting treatment of property, plant and…

Q: Insurance expense incurred on a factory building would be treated as a a.period cost b.selling cost…

A: Introduction: The sum paid by a corporation to get an insurance contract, as well as any additional…