Which cost is directly attributable to a machine?
AInterest on an unrelated overdraft
BInstallation and site preparation
CSalary of the sales manager
DCost of the annual audit
Answer & Solution
Correct answer: B. Installation and site preparation
Directly attributable costs include site preparation, delivery, installation and professional fees.
Keep practising Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment
Browse all Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment questions for CA Final, or explore more Financialreporting topics.
Related questions
How do fixed assets differ from inventory in holding purpose?Why can depreciation on historical cost alone lead to excessive dividends when prices riseIn the appraisal method, who determines fair market value?In indexation, what is applied to the cost of assets?Why might fixed assets be revalued?Which terms apply to natural resources and intangibles respectively?Which event may indicate that an asset is impaired?How is depreciation treated in the cash flow statement?