FSA: reading 27, page 423 q16 and q17: PP&E grow faster than sales

I don’t quite understand the answer to q16 and q17, especially q17: why PP&E grow at a faster rate than sales may indicate expenses are being in appropriately capitalized???

Well, the assumption is that the business grows approximately proportionately. As revenues increase, so should the size of other accounts, such as receivables, capitalized assets, etc. If the capitalized assets are increasing faster than sales, then you kind of have to wonder why. Either the firm is becoming more capital-intensive, or it is capitalizing things it shouldn’t be.