Costs incurred related to plant assets that are already in use are called revenue expenditures if the cost increases the useful life or the asset's productivity.

Question

Quizplus · Accepted Answer

Costs incurred related to plant assets that are already in use are called capital expenditures if the cost increases the useful life or the asset's productivity. Revenue expenditures are costs incurred for routine maintenance or repairs that do not extend the useful life or productivity of the asset.

Costs Incurred Related to Plant Assets That Are Already in Use