A $60,000 outlay for a new machine with a usable life of 15 years is called ________

A) capital expenditure
B) financing expenditure
C) replacement expenditure
D) operating expenditure

A

Business

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Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:

Direct Materials $120,000 Direct Labor 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a) Make and save $15,000 b) Buy and save $15,000 c) Buy and save $5,000 d) Make and save $5,000

Business

All of the following are economic characteristics of land EXCEPT

A) scarcity. B) permanence of investment. C) uniqueness. D) area preference.

Business