A Company Purchases a Remote Building Site for Computer Operations

question 194

Multiple Choice

A company purchases a remote building site for computer operations.The building will be suitable for use after some expenditures.The wiring must be replaced to computer specifications.The roof is leaky and must be replaced.All rooms must be repainted and recarpeted and there will also be some plumbing work done.Which of the following statements is true?

• A)The cost of the building will not include the repainting and recarpeting costs.
• B)The cost of the building will include the cost of replacing the roof.
• C)The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements.
• D)The wiring is part of the computer costs, not the building cost.

---

Definitions:

CRP System

Continuous Replenishment Program, a supply chain management strategy aimed at improving inventory management and enhancing the flow of goods from suppliers to consumers.

Collaboration

The action of working with someone to produce or create something, often seen in business, science, and creative fields.

Coordination Problems

Challenges faced in aligning actions, schedules, or tasks among various parties or units within an organization.

CRP Systems

Capacity Requirement Planning (CRP) Systems are used in manufacturing to plan the production capacity needed to meet customer demands.