Which of the Following Does NOT Belong to the Materials

question 92

Multiple Choice

Which of the following does NOT belong to the materials and parts group of industrial products?

• A)farm products such as wheat
• B)natural products such as iron ore
• C)repair and maintenance items
• D)petroleum
• E)timber

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Definitions:

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation applied in the United States that allows for faster write-offs of assets to encourage investment.

Class Life

The expected useful lifetime of a fixed asset, which determines the depreciation rate for tax and accounting purposes.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life to reflect its decrease in value over time.

After-Tax Cash Flow

After-tax cash flow is the net cash flow generated from business activities after accounting for taxes, indicating the actual cash a company has on hand after tax obligations.