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ServiceNow Exam CIS-HAM Topic 2 Question 46 Discussion

Actual exam question for ServiceNow's CIS-HAM exam
Question #: 46
Topic #: 2
[All CIS-HAM Questions]

Taxes paid at the time of purchase are what type of cost?

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Suggested Answer: A

According to the ServiceNow Hardware Asset Management documentation, original cost is the amount paid to acquire an asset, including any taxes, fees, shipping, installation, or other expenses directly related to the purchase. Original cost is used to calculate depreciation and amortization of an asset over its useful life. The other options are not the type of cost that taxes paid at the time of purchase are. Operating expense, operating cost, and capital expense are different ways of classifying the costs of using and maintaining an asset after it is purchased.


by Tracey at Sep 16, 2024, 01:46 AM

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Harrison
1 months ago
But operating cost includes expenses incurred in day-to-day operations, like taxes.
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Valentine
1 months ago
I think it's original cost because it's part of the initial purchase price.
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Harrison
1 months ago
Taxes paid at the time of purchase are considered as operating cost.
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Lettie
2 months ago
D. Capital Expense, no doubt about it. I bet the tax man would love to see us all treat it as an operating cost!
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Broderick
12 days ago
D. Capital Expense, no doubt about it. I bet the tax man would love to see us all treat it as an operating cost!
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Alpha
13 days ago
D) Capital Expense
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Diane
14 days ago
C) Operating Cost
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Grover
24 days ago
B) Operating Expense
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Edelmira
1 months ago
A) Original Cost
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Melda
2 months ago
Operating expense? Nah, that's for the day-to-day stuff. Taxes are more like a one-time thing, so it's gotta be a capital expense.
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Veta
10 days ago
I see your point, but I still think it's a capital expense because it's a one-time cost for the asset.
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Emeline
11 days ago
Actually, I think it's an original cost because it's directly related to the purchase.
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Andra
1 months ago
No way, I'm pretty sure it's an operating cost. It's part of the cost of doing business.
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Jamika
1 months ago
I think taxes paid at the time of purchase are considered a capital expense.
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Von
2 months ago
Hmm, taxes at the time of purchase? That's gotta be a capital expense, right? I mean, who wants to pay for that out of their pocket money?
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Raymon
2 months ago
Yeah, I agree. It's not something you want to pay for out of your own pocket.
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Elza
2 months ago
I think you're right, it's definitely a capital expense.
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