What Is an Important Difference Between Accessory and Capital Equipment

question 10

Multiple Choice

What is an important difference between accessory and capital equipment when it comes to marketing the equipment to users?

• A) Accessory equipment is part of the organization's final product while capital equipment facilitates the organization's activities
• B) Capital equipment is much more expensive and its purchase may involve more members of the organization than purchase of accessory equipment
• C) Accessory equipment demand is derived from the demand for consumer products
• D) Marketing requirements for accessory equipment are different as more members of the organization must be reached by marketing efforts
• E) Capital equipment is ordered on a more regular basis than accessory equipment

---

Definitions:

Scattergraph

A graphical representation that displays the relationship between two variables, often used in statistics and data analysis.

High-Low Method

A technique used in cost accounting to determine the variable and fixed components of a company's cost structure by analyzing the highest and lowest levels of activity.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a company, such as raw materials and labor costs.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and loan payments.