The Midtown General Hospital\'s financial committee discussion about the old lau
ID: 109404 • Letter: T
Question
The Midtown General Hospital's financial committee discussion about the old laundry building is in progress. The CFO points out that (1) keeping the existing laundry building in its present condition will require ongoing repair and maintenance expenses; (2) renovating the larger building will cost more than renovating the existing smaller old building; and (3) hiring a commercial laundry service will involve contracting for services. Which of these choices will involve expending capital funds?
Keep the existing laundry building in its present condition through ongoing repairs and maintenance
Renovate either of the buildings and replace the equipment
Contract for commercial laundry services
All of these are correct.
A.Keep the existing laundry building in its present condition through ongoing repairs and maintenance
B.Renovate either of the buildings and replace the equipment
C.Contract for commercial laundry services
D.All of these are correct.
Explanation / Answer
CFO is the chief financial officer of the corporate office whos takes a the decision on the financial activities of office. finacial planning is also decide by the CFO.
option (A) Keep the existing laundry building in its present condition through ongoing repairs and maintenance and option (C) Contract for commercial laundry services are management decision , which is decided by the management and committies that laundary building need a repair or not its totally upto management. CFO gives our advice and makes plans to fulfill all objectives of the office in a given budget. this plan and policies passed by the management and executed by them. Contract for commercial laundry services is also upto mangement. CFO dont having any role in it.
CFO can adviced mangement for the actions which can taken by the mangement, so the right option of this question is - (B) Renovate either of the buildings and replace the equipment