Classify Each of the Following Costs Associated with Long-Lived Assets

question 142

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Repairs made to used office equipment

• A)Buildings
• B)Machinery and equipment
• C)Land
• D)Land improvements

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Definitions:

Demand Elastic

Demand elasticity measures how sensitive the quantity demanded of a good or service is in response to a change in its price.

Perfectly Elastic

Describing a situation in which the demand or supply for a good or service is infinitely responsive to changes in price.

Percentage Change

A mathematical calculation that describes the degree of change over time, representing the difference as a percentage of the original figure.

Perfectly Inelastic

Describes a situation where the demand or supply for a good or service does not change in response to price changes.