Plant Assets Are Defined As

question 152

Multiple Choice

Plant assets are defined as:

• A)Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business.
• B)Current assets.
• C)Held for sale.
• D)Intangible assets used in the operations of a business that have a useful life of more than one accounting period.
• E)Tangible assets used in the operation of business that have a useful life of less than one accounting period.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities over a relevant period.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount contributed towards covering fixed costs and generating profit.

Performance Reports

Documents that review and assess the performance of individuals, departments, or organizations against planned objectives.

Cost Centers

Parts of an organization where costs are accumulated for internal accounting purposes but do not directly generate revenue.