The Useful Life of a Plant Asset Is

question 128

Multiple Choice

The useful life of a plant asset is:

• A)The length of time it is productively used in a company's operations.
• B)Never related to its physical life.
• C)Its productive life,but not to exceed one year.
• D)Determined by the FASB.
• E)Determined by law.

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Definitions:

Static Planning Budget

A budget based on a fixed level of activity, created at the start of a budgeting period, which does not change with actual levels of activity.

Flexible Budget

A budget engineered to tweak itself in alignment with volume or activity level shifts.

Employee Salaries

Payments made to employees for their services over a fixed period, typically regularly scheduled and in fixed amounts.

Activity Variance

The difference between budgeted activity levels and actual activity levels.