Discuss the thresholds that trigger the need for an item of capital expenditure. What information would...

Discuss the thresholds that trigger the need for an item of capital expenditure. What information would you need to provide for the approval process? Why?

Expert Solution

There are generally three type of threshold that will be triggering the need for an item of capital expenditure.

A. the total value of the expenditure will be exceeding a higher amount of almost $5,000 is always a capital expenditure

B. The frequency of occourance of these expenses are lower.

C. These capital expenditures are also related to some assets and they will also be defined by the definition.

information I will be needing to provide for approval process will be requiring the need for such expenditure along with the resulting profits out of such expenditures and the future benefits associated with the expenditure of capital in nature which will help the company in maximizing the value. This will be needed because capital expenditure involve large sum of money and they are not frequent in nature so they need to be monitoring properly.

jeff jeffy answered 2 years ago

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