Which of the Following Would Be Considered a Capital Expenditure

question 180

Multiple Choice

Which of the following would be considered a capital expenditure?

• A) Cost to acquire a printing press
• B) Cost to lubricate a machine
• C) Cost to replace some light bulbs
• D) Cost to paint the factory wall

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Definitions:

Operating Expenses

Costs associated with the day-to-day functioning of a business that are not directly tied to production, such as salaries and rent.

Production Processes

Refers to the sequence of activities or operations involved in transforming raw materials into finished goods.

Value Analysis

A systematic assessment to identify and eliminate unnecessary costs in product design without sacrificing functionality or quality.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time.