Final answer:
Expenditures that keep an asset in good operating condition are known as repairs ordinary. They are routine maintenance tasks necessary for the asset to perform to expectations over its useful life. Option b is the correct answer.
Step-by-step explanation:
When determining investment expenditure, it's essential to understand the various categories of spending related to capital goods.
These categories include producer's durable equipment and software, nonresidential structures like factories and offices, changes in inventories, and residential structures such as homes and apartments. The expenditures that keep an asset in good operating condition and allow it to perform to expectations over its useful life are known as repairs ordinary.
These are the routine maintenance tasks that keep the asset functional, as opposed to capital repairs that enhance the value or extend the life of the asset, or betterments which are improvements over the original condition. The correct option answer to the question '_________ are expenditures that keep an asset in good operating condition' is b. Repairs ordinary.