If the ratio of repairs and maintenance expense to property, plant, and equipment is higher than expected, which of the following is a plausible explanation?

Question

Quizplus · Accepted Answer

Charging an addition to a building to repairs and maintenance expense, instead of capitalizing it as part of the property, plant, and equipment, would inappropriately inflate the repairs and maintenance expense, leading to a higher than expected ratio.

If the Ratio of Repairs and Maintenance Expense to Property