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Question
Items that are purchased routinely, do not become part of the final physical product, and are treated like expense items rather than capital goods are called
Options:
A .  Raw materials
B .  Major equipment
C .  Accessory equipment
D .  Component parts
E .  Process materials
Answer: Option C
Items that are purchased routinely, do not become part of the final physical product, and are treated like expense items rather than capital goods are called Accessory equipment. Accessory equipment needs to be used in the production process in any business firm.

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