Question

Which one of the following items is not considered a part of the cost of a truck purchased for business use?
a) Sales tax.
b) Freight charges.
c) Truck license.
d) Cost of lettering on side of truck.

Answer 1

Considering the available options, the item that is not considered a part of the cost of a truck purchased for business use is "Truck license."

What is the Cost of an Asset?

In business management, the cost of an asset is the summation of the cost of buying an item, including other costs expended in getting the asset to the point of use plus set-up cost before use.

The Truck Licence cost is not limited to a specific truck, as it can be used for any other trucks owned by the firm.

In this case, going by the definition above, the cost of set up includes:

• Sales tax
• Freight charges
• Cost of lettering on the side of the truck, etc.

Hence, in this case, it is concluded that the correct answer is "Truck license."

Learn more about the Cost of an Asset here: https://brainly.com/question/25126159