Planning for capital expenditures is necessary for all of the following reasons except:
A) machinery and other fixed assets wear out
B) expansion may be necessary to meet increased demand
C) amounts spent for office equipment may be immaterial
D) fixed assets may fall below minimum standards of efficiency

Question

Quizplus · Accepted Answer

Planning for capital expenditures is necessary because fixed assets wear out, expansion may be necessary, and fixed assets may fall below minimum standards of efficiency. However, the amount spent on office equipment may be immaterial and may not require a significant capital expenditure plan.

Planning for Capital Expenditures Is Necessary for All of the Following