A Deltona job rents a lift for 7 days at $480 per day plus $250 delivery. What equipment rental cost should be coded?
Correct Answer
C) $3,610
Rental cost equals daily rent multiplied by days plus delivery.
Why This Is the Correct Answer
Rental cost equals daily rent multiplied by days plus delivery.
Why the Other Options Are Wrong
Option A: $3,360
$3,360 is below the supported result for equipment rental cost; it likely drops a required step.
Option B: $730
$730 is below the supported result for equipment rental cost; it likely drops a required step.
Option D: $4,090
$4,090 is above the supported result for equipment rental cost; it likely adds a step the rule does not support.
Memory Technique
Equipment cart for Clerk Codes: rental first, cost second, whole units last.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Equipment cost coding and job cost records; verify the trade cost, production, or field-control rule before answering.
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