Costs incurred on acquiring a capital asset in a business which is intended to benefit in future per...........

Costing - Phase (I & II) Overview of Cost and Management Accounting

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Costs incurred on acquiring a capital asset in a business, which is intended to benefit in future periods is:

Capital costs

Revenue costs

Normal costs

Abnormal costs

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Explanation:

Capital cost is a cost, which is intended to benefit in future periods. A capital cost is treated as an asset and shown in the balance sheet of the business enterprise e.g. the expenditure incurred on acquisition of machine in a factory is a capital cost.