The Replacement of a Major Component Increased the Productive Capacity

question 57

Multiple Choice

The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour.The expenditure for the replacement component should be debited to:

• A)Repairs Expense.
• B)Maintenance Expense.
• C)Equipment.
• D)Gain from Repairs.

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Definitions:

Attractive Industry

A sector of the economy that is appealing to investors and companies due to its potential for high profitability, growth, and stable demand.

Competitors

Businesses or individuals that offer similar products or services and compete for the same market share or audience.

Cost Leadership

A strategy that aims to make an organization the most cost-efficient producer in its industry.

Differentiation Strategy

A strategy that offers products that are different from the competition.