If the Ratio of Repairs and Maintenance Expense to Property

question 57

Multiple Choice

If the ratio of repairs and maintenance expense to property, plant, and equipment is higher than expected, which of the following is a plausible explanation?

• A)Routine maintenance on an important piece of machinery was charged to repairs and maintenance expense.
• B)An addition to a building was charged to repairs and maintenance expense.
• C)The company forgot to depreciate all of its equipment.
• D)The company purchased an unusual amount of new equipment.

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Definitions:

Reliability

The measure of consistency and dependability in a product's performance, ensuring it operates as expected over a given period.

Web Services

Software systems designed to support interoperable machine-to-machine interaction over a network, enabling different applications to communicate with each other.

Access Remote

The ability to obtain or retrieve information from a computer system from a different location.

IT Infrastructure

The composite hardware, software, network resources, and services required for the existence, operation, and management of an enterprise IT environment.