Intuitiv Manufacturing's large plastics molding machine suddenly broke down during its day shift. When considering the purchase of available alternatives, Intuitiv decided to rent one for the next two years instead of buying one. In this situation, the large plastics molding machine it rented would be classified as
A) an installation.
B) accessory equipment.
C) an unsought good.
D) a process material.
E) MRO supplies.

Question

Quizplus · Accepted Answer

An installation refers to major capital investments in goods like large machines, which are significant for the operations of a business. Renting a large plastics molding machine for two years falls under this category as it is a crucial piece of equipment for Intuitiv Manufacturing's operations.

Intuitiv Manufacturing's Large Plastics Molding Machine Suddenly Broke Down During