The term, obsolescence, as it relates to the useful life of an asset, refers to:
A. The inability of a company's plant assets to meet the company's demands.
B. A plant asset that no longer has a competitive advantage because of innovations.
C. An asset's salvage value becoming less than its replacement cost.
D. The end of an asset's useful life.
E. Intangible assets that have been fully amortized.
Answer: B
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Sobus Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The fixed manufacturing overhead standards for the company's only product specify 0.70 hours per unit at $4.00 per hour. The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $70,000 and budgeted activity of 17,500 hours. During the year, 19,700 units were started and completed. Actual fixed overhead costs for the year were $57,700.Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand
side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net). All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease) by: A. ($55,160) B. ($26,300) C. $26,300 D. $55,160
Contracts involving personal rights are generally assignable.
Answer the following statement true (T) or false (F)
Under absorption costing, a company had the following unit costs when 9,000 units were produced.Direct labor$7.25per unitDirect material$8.00per unitVariable overhead$5.50per unitFixed overhead ($67,500/9,000 units)$7.50per unitTotal production cost$28.25per unitCompute the total product cost per unit under absorption costing if 25,000 units had been produced.
A. $15.25 B. $20.75 C. $28.25 D. $23.45 E. $26.25
Describe the delete set-to-null option (for implementing a referential integrity constraint)
What will be an ideal response?