contestada

Planning for capital expenditures is necessary for all of the following reasons except:
a. machinery and other fixed assets wear out
b. expansion may be necessary to meet increased demand
c. amounts spent for office equipment may be immaterial
d. fixed assets may fall below minimum standards of efficiency

Respuesta :

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Answer:

The correct answer is (C)

Explanation:

Planning for capital expenditures is an important aspect which helps the organisation to grow in future and to mitigate the risks of financial distress. Amount spent on office equipment is not a part of planning for capital expenditures because in time fixed assets such as office equipment wear out or become superseded. All other reason are a part of planning for capital expenditures.

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