Asked by Silvia Montañes Sintes on Jul 11, 2024
Verified
An asset's cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.
Asset's Cost
The total amount of money or the value exchanged to acquire, maintain, improve, or replace an asset.
Intended Use
The purpose for which a product or service is specifically designed or for which it is intended to be used.
- Determine the elements and mathematical operations associated with acquiring assets, encompassing cost distribution and the process of capitalization.
Verified Answer
CW
cristine wauthionJul 12, 2024
Final Answer :
True
Explanation :
This statement is correct according to accounting principles. The cost of an asset includes all expenses that are necessary to get the asset ready for its intended use, such as purchase price, installation fees, transportation costs, and any other costs associated with preparing the asset for use.
Learning Objectives
- Determine the elements and mathematical operations associated with acquiring assets, encompassing cost distribution and the process of capitalization.