When high-dollar fixed assets are purchased, there should be a strict approval process which would include three formal steps.Which of the following is not one of those steps?
A)Review of the proposal and specific approval by the appropriate level of management
B)Investment analysis
C)Comparison with the capital budget
D)Feasibility study

Question

When high-dollar fixed assets are purchased, there should be a strict approval process which would include three formal steps.Which of the following is not one of those steps?
A)Review of the proposal and specific approval by the appropriate level of management
B)Investment analysis
C)Comparison with the capital budget 
D)Feasibility study

Quizplus · Accepted Answer

The three formal steps for approval of high-dollar fixed assets typically include the review of the proposal and specific approval by the appropriate level of management, investment analysis, and comparison with the capital budget. A feasibility study may also be conducted but it is not one of the three formal steps mentioned.

When High-Dollar Fixed Assets Are Purchased, There Should Be a Strict