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Upgrading a machine to increase production, is called: 1) Capital Expenditure. 2) Direct Cost. 3) Indirect Cost. 4) Non of Them?

Accounting Cost Accounting
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Question added by Abdul Rahim Said Rahim , Senior Executive - Business Development , Al Ruwais Plastic Products Trading LLC
Date Posted: 2013/06/20
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Deleted user
by Deleted user

capital expenditure

Deleted user
by Deleted user

1) Capital Expenditure ..........
A Capital Expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset.

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

Capital Expenditure

Naba Kumar Nabakumar
by Naba Kumar Nabakumar , Executive , srei

1) Capital expendture..............................A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.

SREEDEVI SUNILKUMAR
by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

Capital expenditure as upgrading increases production capacity

 

AYMAN EL KASHLAN
by AYMAN EL KASHLAN , ACCOUNTS MANGER , MODERN OFFICE FOR POULTERY

WHEN EXPENSSS GIVE US FUTURE BENEFIT IT CAPATLIZED BUT IF IT GIVE US CURRENT BENEFIT ITS EXPENSS FOR CURRENT PERIOD

Ilham Mohammed
by Ilham Mohammed , Senior Accountant , gulf center for foodstuff

Capital Expenditure Because it is increasing the level of production.

if any expenditure increasing your production level or assets life time than it will become a cappital expenditure.

Shaik Nayeemulla
by Shaik Nayeemulla , Inventory Planning & Procurement , Motor City

Capital Expenditure.

ANEES CHULLIYIL
by ANEES CHULLIYIL , Account Executive , THAI GROUP

Capital Expenditure, Because for a Buisiness

Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

capital expenditure

Deleted user
by Deleted user

The amount incurred to ehance the production capacity of a plant or machinery is a Capital Expenditure which obviously increase the value this asset.

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