Fixed Asset Accountant Mock Interview
Master 30 Fixed Asset Accountant interview questions covering depreciation, capitalization policies, and reconciliations.
Question 27 of 30
What types of costs should be capitalized when an asset is purchased or acquired?
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Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
Many people think the purchase price of a fixed asset is the only cost that should be capitalized when purchasing an asset. However, there are other costs associated with the purchase that should also be capitalized. These costs include sales tax and delivery, as well as installation and labor costs, if it is a larger asset.
Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
"While the purchase price of a fixed asset is typically the main cost that should be capitalized when purchasing an asset, there are other costs associated with the asset acquisition that should also be included in the capitalized cost. For example, delivery charges, sales tax, installation and labor should be added on to the asset price and depreciated over the useful life of the asset."
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