In General, Efficiency Is Defined as

question 29

Multiple Choice

In general, efficiency is defined as

• A)actual output divided by required input.
• B)required input divided by actual output.
• C)actual output multiplied by required input.
• D)actual output minus required input.

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Definitions:

Capital Expenditures

Capital expenditures are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Additions

Refers to increases or expenses added to a specific account, often relating to assets like buildings or equipment.

Extraordinary Repairs

Infrequent expenditures that extend an asset’s life (such as a new engine in a car).

Betterments

Improvements that increase the efficiency of an asset by adding accessories or replacing parts with more effective/powerful ones.