Which of the following would probably be treated as a capital item by a large clothing manufacturer?
A) Computer-controlled fabric cutting machines.
B) Zippers.
C) Cloth.
D) Buttons.
E) None of these would be treated as a capital item.

Question

Quizplus · Accepted Answer

Computer-controlled fabric cutting machines would be treated as a capital item by a large clothing manufacturer because it is a long-term investment that will increase productivity and efficiency in the manufacturing process. The other options, such as zippers, cloth, and buttons, would likely be considered inventory or operating expenses.

Which of the Following Would Probably Be Treated as a Capital