The cost of rearranging the factory equipment to increase efficiency should be recorded as a capital expenditure in the normal situation.

Question

Quizplus · Accepted Answer

The cost of rearranging the factory equipment to increase efficiency would be considered a capital expenditure because it is a one-time expense that is expected to benefit the company for multiple years. Capital expenditures are recorded on the balance sheet as assets and are depreciated over their useful lives.

The Cost of Rearranging the Factory Equipment to Increase Efficiency