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Question
______________ of an asset includes invoice price and other cost.
______________ of an asset includes invoice price and other cost.
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Solution
The correct option is D Cost price
Cost Price = Purchase Price + All Incidental Expenses
Purchase price is the Invoice price at which the asset is purchased from the vendor. Incidental expenses are all expenses incurred in order to bring asset into usable condition. eg. Carriage, Installation, Erection charges etc.
Cost Price = Purchase Price + All Incidental Expenses
Purchase price is the Invoice price at which the asset is purchased from the vendor. Incidental expenses are all expenses incurred in order to bring asset into usable condition. eg. Carriage, Installation, Erection charges etc.
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