Question

The cost of new technology added to equipment that reduces operating costs is classified as a/an...

The cost of new technology added to equipment that reduces operating costs is classified as a/an

Select one:

a. Betterment

b. Repair

c. Depreciation

d. Expense

1 0
Add a comment Improve this question Transcribed image text
Answer #1

Betterment literally means improvement of something, in this case improvement of equipment so in the long run the equipment will generate less operating costs than it used to do previously, thus the answer is:-

a) betterment

Add a comment
Know the answer?
Add Answer to:
The cost of new technology added to equipment that reduces operating costs is classified as a/an...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which of the following cannot be classified as variable cost? A) Variable Operating Expense B) Cost...

    Which of the following cannot be classified as variable cost? A) Variable Operating Expense B) Cost of Construction: Labor C) Fixed Operating Expense D) Direct Cost

  • An example of a sunk cost is a. maintenance costs of new equipment b. the cost...

    An example of a sunk cost is a. maintenance costs of new equipment b. the cost of installation of the new equipment c. the purchase price of the old equipment d. the purchase price of new equipment being considered for purchase

  • sources - Company XYZ is considering the purchase of a new research technology that would have...

    sources - Company XYZ is considering the purchase of a new research technology that would have a total installed cost of 5100,000. The new research technology would last until three years from today. The new research technology would be depreciated using the Three-Years MACRS. The new research technology would have no incremental effect on revenues, but it would decrease expenses by 550,000 each of the next three years. In eactly three years, the new research technology could be sold for...

  • A new medical instrument costs $50,000. Operating, maintenance, and repair costs are $10,000 for the first...

    A new medical instrument costs $50,000. Operating, maintenance, and repair costs are $10,000 for the first year, $25,000 for the second year, $40,000 for the third year, and $55,000 for the fourth year. The minimum attractive rate of retum is 10%. If the medical instrument is kept for four years, the annual met equivalent cost is most nearly (A) $10,000 (B) $12,500 (C) 545,000 (D) $46,500 Given investments with the same nominal yearly interest rates, which of the following compounding...

  • Differential Annual Net Operating Income

    Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume:  •  New delivery equipment cost, $170,000.  •  Annual depreciation expense on the new delivery equipment, $17,000.  •  Old delivery equipment cost, $133,000.  •  Annual depreciation expense on the old delivery equipment, $13,300.  •  Annual decrease in utilities cost, $1,400.  •  Annual increase in advertising costs, $6,800.  •  Annual increase in sales, $81,000.  •  Annual increase in cost of goods sold, $21,000.  •  Annual increase in sales commissions, $1,500.  •  Annual increase in...

  • Staples sold a new deal for $10,500. Equipment A costs $4,516, Equipment B&C both cost $850...

    Staples sold a new deal for $10,500. Equipment A costs $4,516, Equipment B&C both cost $850 each and equipment D costs $1300. We have to pay $800 on shipping. What is our profit?

  • Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV...

    Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Billing error correction $22,600 Cable signal testing 79,900 Reinstalling service (installed incorrectly the first time) 48,500...

  • Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV...

    Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Billing error correction $24,800 Cable signal testing 56,000 Reinstalling service (installed incorrectly the first time) 53,300...

  • XYZ Corporation is considering the acquisition of a new piece of equipment. The new equipment costs...

    XYZ Corporation is considering the acquisition of a new piece of equipment. The new equipment costs $250,000, plus it will cost $10,000 to ship it to XYZ, and it will cost $5,000 to install it at XYZ. The equipment has a 10-year class life and will be depreciated by the MACRS depreciation system. What amount of depreciation will be expensed in Year 2?

  • XYZ Corporation is considering the acquisition of a new piece of equipment. The new equipment costs...

    XYZ Corporation is considering the acquisition of a new piece of equipment. The new equipment costs $250,000, plus it will cost $10,000 to ship it to XYZ, and it will cost $5,000 to install it at XYZ. The equipment has a 10-year class life and will be depreciated by the MACRS depreciation system. What amount of depreciation will be expensed in Year 4?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT