The Main Difference Between Ordinary Repairs and Extraordinary Repairs Is

question 60

Multiple Choice

The main difference between ordinary repairs and extraordinary repairs is:

• A)ordinary repairs cost less.
• B)ordinary repairs are expenditures for routine maintenance and upkeep,whereas extraordinary repairs increase an asset economic usefulness in the future through increased efficiency,capacity,or longer life.
• C)extraordinary repairs only maintain the asset for a short time,whereas ordinary repairs increase the usefulness of assets beyond their original condition.
• D)extraordinary repairs are expenses,not expenditures.

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit generation.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core operations.