Briggs corp. will remove tow small buildings from the a newly purchased piece of land the expense...

Question:

Briggs corp. will remove tow small buildings from the a newly purchased piece of land the expense required. This is part of the what?

Managerial Accounting

Managerial accounting is considered as one of the branches of accounting. It involves the preparation and presentation of accounting information that would be used by managers to make useful decisions concerning business operations. Cost accounting is considered as a subset of managerial accounting.

Answer and Explanation:

Answer: Renovation expense or cost.

Renovation expense refers to the cost that an organization or an individual incurs when renovating a property that has been acquired after the initial tenancy is terminated. Renovation expenses are considered as property improvements by the IRS and add to the cost basis of a given property. Therefore, renovation expense forms part of the cost of the land. It is important to note that the renovation expense is not tax-deductible.


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Managerial Accounting Functions

from Business Management: Help & Review

Chapter 9 / Lesson 1
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