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?

Question

Quizplus · Accepted Answer

Whether costs will be incurred for more than one year is not relevant to the decision of whether to expense or capitalize costs incurred after acquiring a capital asset. The relevant factors are whether the costs extend the asset's useful life, whether they reduce operating costs, and whether they improve output.

When Deciding Whether to Expense or Capitalize the Costs Incurred