Which of the following is/are not true regarding maintenance?
a. Maintenance includes routine costs such as for cleaning and adjusting.
b. Maintenance includes the costs of restoring an asset's service potential after breakdowns or other damage.
c. Maintenance does not extend the estimated service life or increase its productive capacity of an asset beyond original expectations.
d. U.S. GAAP and IFRS treat maintenance expenditures as expenses of the period when the firm makes the expenditure.
e. Distinguishing repairs from maintenance is difficult but typically not necessary because expenditures for both are period expenses.
B
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What will be an ideal response?
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Indicate whether the statement is true or false
A potential negative effect of using a just in time inventory system is the immediate impact of labor strikes on the transportation system such as railroad.
Answer the following statement true (T) or false (F)
Use the information in Table J.6. What is the average past due time at Workstation A for the critical ratio rule?
A) 0 hours B) greater than 0 hours but fewer than or equal to 5 hours C) greater than 5 hours but fewer than or equal to 10 hours D) greater than 10 hours