Final Factor to Be Considered with Capital Expenditures Is the Need

question 40

Multiple Choice

final factor to be considered with capital expenditures is the need in some states for governmental permission to purchase. If the ____________ is not granted by the state, all the key factors outlined in the textbook are meaningless. The goals of a ______ are to protect the consumers, generate benefits for them, and prevent the acquisition of unneeded equipment (i.e., ensure access to quality service at a reasonable cost) .

• A) certificate of need (CON) / CON law
• B) community need certificate (CNC) / CNC
• C) consumer protection law (CPL) / CPL
• D) community protection certificate (CPC) / CPC law
• E) acquisition approval law (AAL) / AAL

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Definitions:

Administrative Expense

Costs related to the general operation of a business, such as office supplies, salaries of administrative staff, and utilities, but not linked directly to production or sales.

Budgeted Selling Price

The anticipated amount for which a product or service is expected to sell, as determined during the budgeting process.

Master Budget

A comprehensive financial planning document that consolidates all of a company's budgets, including sales, production, and various operational budgets.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.