a manufacturing firm located in the southeastern united states has decided to build a second facility to handle the increased volume of product needed. this would be considered a(n) expenditure. operating capital fixed variable

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21-11-2022
Business

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a manufacturing firm located in the southeastern united states has decided to build a second facility to handle the increased volume of product needed. this would be considered a(n) expenditure. operating capital fixed variable

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Tundexi Tundexi · Answer 1 · 2022-11-24T11:02:32+01:00

As the firm has decided to build a second facility to handle the increased volume of product needed, this would be considered a capital expenditure. The Option C is correct.

What is a capital expenditure?

Basically, a capital expenditures refers to those funds used by a company to acquire, upgrade or maintain their physical assets such as property, plants, buildings, technology, or equipment. It is often used to undertake new projects or investments by a company. The capital expenditures on fixed assets can include the repairing a roof, purchasing a piece of equipment or building a new factory.