Which of the Following Is/are Not True Regarding Maintenance

question 34

Multiple Choice

Which of the following is/are not true regarding maintenance?

• A)Maintenance includes routine costs such as for cleaning and adjusting.
• B)Maintenance includes the costs of restoring an asset's service potential after breakdowns or other damage.
• C)Maintenance does not extend the estimated service life or increase its productive capacity of an asset beyond original expectations.
• D)U.S.GAAP and IFRS treat maintenance expenditures as expenses of the period when the firm makes the expenditure.
• E)Distinguishing repairs from maintenance is difficult but typically not necessary because expenditures for both are period expenses.

---

Definitions:

Intrapreneurship

The act of behaving like an entrepreneur within a larger organization, including taking initiative and promoting innovative projects.

Divisional Structure

An organizational layout where the company is divided into semi-autonomous units or divisions, each focused on a specific product line or geographic area.

Multidivisional Structure

A form of organizational structure where a company is divided into semi-autonomous divisions, each with its own set of functional units like marketing and finance.

Matrix Structure

An organizational structure that combines both functional and divisional departmentalization together with dual lines of authority.