When deciding whether to expense or capitalize the costs incurred after acquiring a capital asset,which one of the following is not relevant to the decision? A)Will these costs extend useful life? B)Will these costs reduce asset operating costs? C)Will these costs improve output? D)Will these costs be incurred for more than one year?

Question

Quizplus · Accepted Answer

The question is asking about whether to expense or capitalize costs incurred after acquiring a capital asset. The relevant factors in making that decision are whether the costs will extend useful life, reduce asset operating costs, or improve output. Whether the costs will be incurred for more than one year is not a relevant factor in this decision.

When Deciding Whether to Expense or Capitalize the Costs Incurred