What is the rule of thumb for allocating for spare parts purchases in a budget?
A . About 5 percent of the capital cost of equipment for a location should be allocated each year for spare parts
B. About 6 percent of the capital cost of equipment for a location should be allocated each year for spare parts
C. About 7 percent of the capital cost of equipment for a location should be allocated each year for spare parts
D. About 9 percent of the capital cost of equipment for a location should be allocated each year for spare parts
Answer: A
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