Which of the Following Would Probably Be Treated as a Capital

question 346

Multiple Choice

Which of the following would probably be treated as a capital item by a large clothing manufacturer?

• A) Computer-controlled fabric cutting machines.
• B) Zippers.
• C) Cloth.
• D) Buttons.
• E) None of these would be treated as a capital item.

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Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend to procure a good or service, reflecting the value they place on it.

Expected Revenue

The total amount of money anticipated to be received for goods or services sold, calculated over a specific period.

Probability

A measure of the likelihood that a particular event will occur.

Reservation Price

The maximum amount a buyer is willing to pay for a good or service or the minimum amount a seller is willing to accept.