Classify Each of the Following Costs Associated with Long-Lived Assets

question 211

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Fences around land at new business location

• A)Land improvements
• B)Buildings
• C)Land
• D)Machinery and equipment

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Definitions:

Trade Secret

A type of intellectual property comprising formulas, practices, processes, designs, instruments, patterns, or compilations of information that are not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

Short Run

A period of time in which at least one input, typically capital, is fixed, and producers can only adjust the variable inputs like labor.

Long Run

A period in economics during which all inputs and operations can be varied, allowing for the adjustment to changes in market conditions or demand.

Very Long Run

In microeconomics, a period of time long enough that technology can change and firms can introduce new products.