What are the two reasons that a large portion of capacity cost is usually incurred early in the life of the capacity?
A)(i)Maintenance costs are usually higher in the early part of the capacity's life, and (ii)assets lose their value most quickly early in their lives.
B)(i)Installation costs are often large, and are incurred up-front, and (ii)maintenance costs are usually higher in the early part of the capacity's life.
C)(i)Assets lose their value most quickly early in their lives and (ii)installation costs are often large, and are incurred up-front.
D)(i)Installation costs are often large, and are incurred up-front and (ii)there is a substantial cost associated with getting an asset ready for sale as salvage.
E)(i)There is a substantial cost associated with getting an asset ready for sale as salvage (ii)operating costs tend to fall as staff get more expert in using the asset.

Question

Quizplus · Accepted Answer

Installation costs are significant and typically incurred at the beginning of a project, and assets tend to depreciate most rapidly in the early stages of their lifecycle.

What Are the Two Reasons That a Large Portion of Capacity