Costs Incurred to Increase the Operating Efficiency or Useful Life

question 93

Multiple Choice

Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as

• A) capital expenditures.
• B) expense expenditures.
• C) ordinary repairs.
• D) revenue expenditures.

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Definitions:

Production

The process of creating goods or services by combining labor, capital, and natural resources.

GDP

Gross Domestic Product, a measure of a country's economic performance, representing the total value of all goods and services produced over a specific time period.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all finished goods and services produced within a country's borders in a specific time period.

Military Aircraft

Aircrafts designed for use in warfare, including fighters, bombers, and transport planes.