A disadvantage of evaluating capital expenditures separately from operating expenditures is that it is easy to overlook operating costs associated with newly acquired assets.

Question

Quizplus · Accepted Answer

Evaluating capital expenditures separately from operating expenditures may lead to a focus on the initial investment and ignore ongoing costs such as maintenance and repairs, which can be significant over time.

A Disadvantage of Evaluating Capital Expenditures Separately from Operating Expenditures