To Achieve Effective Control Over Fixed-Asset Additions, a Company Should

Multiple Choice

To achieve effective control over fixed-asset additions, a company should establish activities that require:

A) capitalization of the cost of fixed asset additions in excess of a specific dollar amount.
B) performance of recurring fixed asset maintenance work solely by maintenance department employees.
C) any fixed asset additions that are not used in the business to be classified as investments.
D) authorization and approval of major fixed asset additions.