Operating Leases

question 83

Multiple Choice

Operating leases

• A)are reported on the balance sheet as an intangible asset.
• B)are,in essence,the acquisition of an asset using debt.
• C)allow companies to take advantage of various tax benefits
• D)have a lease term of one year or less.

---

Definitions:

Per Unit Costs

The average cost for each unit produced, calculated by dividing the total costs of production by the number of units produced.

Inefficient Use

The allocation or utilization of resources in a manner that does not maximize their potential or economic value.

Resource Prices

The costs associated with acquiring the inputs or factors of production needed to produce goods or services, such as labor, raw materials, and capital.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.