Large,expensive items used in the production process are BEST classified as:
A) Capital equipment
B) OEMs
C) Accessory equipment
D) MROs
E) Manufactured materials

Question

Quizplus · Accepted Answer

Large, expensive items used in the production process are typically classified as capital equipment. These are long-term investments that are used to produce goods or provide services, such as machinery, vehicles, and computers. Capital equipment is different from MROs (maintenance, repair, and operating supplies), which are used to maintain and support the production process, and accessory equipment, which is used to complement the capital equipment. Manufactured materials typically refer to raw materials or components used in the production process, rather than large equipment items. OEMs (original equipment manufacturers) refer to companies that produce the capital equipment, rather than the equipment itself.

Large,expensive Items Used in the Production Process Are BEST Classified