Which conflicting factors are the two departments debating?

Company T needs to update its forecast for the remaining 9 months of the financial year to comply with its bank financing convenants. There is a debate between the manufacturing department, which wants to replace some large equipment within the next six months, and the finance function, which wants to ensure that sufficient reserves have built up to fund the purchase outright rather than exploring further financing options.

Which conflicting factors are the two departments debating? Select ALL that apply.
A . Revenue expenditure
B . Short term
C . Capital expenditure
D . Long term
E . Independence

View Answer

Answer: B,D