Bubbles,a major player in the beverage industry,is currently negotiating the purchase of a purification plant and a bottling unit.This is an important investment for Bubbles and the products have been designed specifically for them.Which of the following types of products is being purchased by Bubbles?
A)Accessory equipments
B)Installations
C)Component parts and materials
D)Supplies

Question

Quizplus · Accepted Answer

The purchase of a purification plant and a bottling unit would fall under the category of installations, which are major long-term investments in the form of land, buildings, and equipment used in the production and distribution of goods and services. Accessory equipments, component parts and materials, and supplies are typically smaller, short-term purchases needed to support production and operations.

Bubbles,a Major Player in the Beverage Industry,is Currently Negotiating the Purchase