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.

In a minimum of five to seven sentences, identify the key terms in your case and state why you believe that each one is relevant to your case.