Which of the Following Costs Associated with a Delivery Van

question 106

Multiple Choice

Which of the following costs associated with a delivery van should NOT be capitalized?

• A)The van's engine is overhauled and this will extend the useful life by five years.
• B)The van is modified so it can be used for multiple purposes in the business.
• C)The van is repainted.
• D)All of the above items should be capitalized.

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Definitions:

Open System Organizations

Organizations that interact with their environment, adapting and evolving in response to external inputs and changes.

External Environment

The factors outside an organization that can influence its operation, including economic, political, technological, and social conditions.

High-Performance Work Practices

Organizational practices that enhance the productivity and effectiveness of an organization and its employees.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.