To Achieve Effective Control Over Fixed-Asset Additions, a Company Should

question 2

Multiple Choice

To achieve effective control over fixed-asset additions, a company should establish activities that require:

• A)capitalization of the cost of fixed asset additions in excess of a specific dollar amount.
• B)performance of recurring fixed asset maintenance work solely by maintenance department employees.
• C)any fixed asset additions that are not used in the business to be classified as investments.
• D)authorization and approval of major fixed asset additions.

---

Definitions:

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision making, but can sometimes lead to biased or inaccurate judgments.

Native Language

The language that a person has been exposed to from birth or within the critical period, often considered one's first language or mother tongue.

Color Words

Words that describe or represent specific colors, used in language to convey visual information.