A retailer invests $1 million in a major computer network to streamline purchasing,inventory control,bill payments and income control.In which category of investment is this capital expenditure most likely to fit?

Question

Quizplus · Accepted Answer

The investment in a major computer network is aimed at decreasing costs and improving efficiency, which falls under the category of investing in new technology. This expenditure does not fall under the category of replacing old assets or increasing revenue as it is primarily focused on streamlining operations.

A Retailer Invests $1 Million in a Major Computer Network