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Total cost of an asset must be brought together in order to know amount sent. The purchasing price of the equipment, transportation, Installation, service charged and so, then the total can be calculated and arrive at the actual price. (Cost of the asset)
Is cost of other services like telephone calls,cost and other ancillary cost added?
According to my understanding, the cost of the asset does not only involve the price of the asset but also the cost of other expenses like mounting of the oven, transportation cost.
Cost of the asset includes the purchase price, shipping, installation, and other services associated with the asset.
cost is base to determine the viable of any business, failure it will lead to business closure
Cost of the asset
Other cost of the asset could be costs that will be assigned under full costing, eg : - Direct materials - Direct labor - Commissions - Allocated variable overhead - Allocated fixed overhead
Accounting -> Cost of the asset Cost of the asset The cost of the asset is more than that, it also includes costs involved in bringing the asset into the business. For example, if you buy a Pizza Oven then it may cost $10 000 to buy (invoice price), however, there may also be a $5000 cost of installation - electric charges, the concrete base and so on. The cost of the Pizza Oven is $15 000.
course is clearly understood.