Snowy Mountain Ski Lodge owners know that the lifts on the north slope will need replacing in the next two years. Three months prior to replacement, they will include the expenditure in their cash budget.

Question

Quizplus · Accepted Answer

Chair lifts would be considered a capital budget item-a major capital expenditure for a ski lodge. A major purchase such as this would be part of the capital budget in the company's financial plan.

Snowy Mountain Ski Lodge Owners Know That the Lifts on the North