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You have been hired as a consultant for Anytime Corporation. Anytime Corp incorporated in 1976 and is a manufacturer of statues. Items purchased for the production plant from cement, tools, machinery, etc are recorded as an expense by the company. The Company has used this practice since its inception. You have been asked by management to determine whether it is proper to continue this practice or use
some other methodology to record the purchase of these various items. The president of the Company has been told that perhaps some expenditures could be capitalized. What other methods could be used to record the purchase of these items on the Company’s books and how could the Company determine when it would be proper to employ these methods? Management of the Company requires examples of how these various methods could be employed and accounted for and how each would affect the bottom line. Define your problem statement and research question(s).
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