Because Telus wanted to become a big player in the booming market for outsourcing computer services,it set up Lucent Technologies to manage corporate clients' worldwide computer networks.Lucent Technologies assists corporations in global network and computer management by drawing on Telus's worldwide digital network and its computer hardware and software businesses.It also relies on the expertise of technicians at Bell Laboratories.
-Refer to Lucent Technologies.Telus requires its customers to purchase all the necessary technology to run the network.This requires expensive machinery that will be purchased and then depreciated over time.What is the machinery classified as?

Question

Quizplus · Accepted Answer

The machinery required for running the network is classified as installations. Installations are a type of fixed asset and are usually large and expensive items, such as machinery or equipment, that are purchased and installed in a business or organization for the purpose of carrying out its operations. They are usually depreciated over time, which means that their cost is gradually written off to reflect their decreasing value over time.

Because Telus Wanted to Become a Big Player in the Booming