Decisions to install new equipment,replace old equipment,and purchase or construct a new building are examples of
A)capital investment decisions.
B)qualitative decisions.
C)sales mix decisions.
D)direct costing decisions.

Question

Quizplus · Accepted Answer

Decisions to invest capital in new equipment, replace old equipment or buy/construct a new building are all examples of long-term investment decisions that are considered capital investment decisions. These decisions involve high cost and have significant impact on the company's future earnings and performance. Therefore, they require careful analysis and evaluation before implementation.

Decisions to Install New Equipment,replace Old Equipment,and Purchase or Construct