A $60,000 Outlay for a New Machine with a Usable

question 9

Multiple Choice

A $60,000 outlay for a new machine with a usable life of 15 years is called

• A) capital expenditure.
• B) operating expenditure.
• C) replacement expenditure.
• D) none of the above.

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Definitions:

Efficiency

A measure of how well resources are used to produce goods and services without waste.

Trade-Off

A comparison of costs and benefits of doing something.

Society's Goals

The collective aims or objectives sought after by a group of individuals living as a community or society.

Efficiently

Pertains to performing or operating in the best possible manner with the least waste of time and effort.