Which cost incurred on equipment does not belong to the group? Freight on acquisition of equipment Non refundable tax paid on equipment upon purchase Testing and installation costs of equipment Training of personnel who will operate the equipment
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Which cost incurred on equipment does not belong to the group?
Freight on acquisition of equipment
Non refundable tax paid on equipment upon purchase
Testing and installation costs of equipment
Training of personnel who will operate the equipment
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