ADM 1340 Lecture Notes - Lecture 9: Asset, Profit Margin, Asset Turnover

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

Are used in the operations of a business. Purchase price, including taxes and duties, less discounts or rebates. Expenditures necessary to bring asset to its intended location and make it ready for its intended use. Closing costs such as title, legal fees and survey costs. Costs incurred to prepare the land for its intended use such as clearing, grading and filling. Cost of land is not depreciated because it has unlimited useful life. Decline in service potential, and require maintenance and replacement to keep their value. All necessary expenditures relating to the purchase or construction of a building are charged to the building account. All costs to make the building ready for its intended use. Expenditures for replacing or repairing the roof, floors, wiring, or. When new building is constructed, cost consists of plumbing. Can include: delivery equipment, office equipment, machinery, vehicles, furniture and fixtures. Expenditures require in assembling, installing and testing the unit.