A Fixed Asset Is

question 65

Short Answer

A fixed asset is
an amount due from a customer who has purchased goods on credit.
an asset with long-term use or value, such as land, buildings, and equipment.
an expense, such as rent, that is paid before the upcoming period in which it is due.
an asset that can or will be converted to cash within the following year.
a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.

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Definitions:

Absorption Costing

An accounting procedure that integrates all production-related costs, capturing direct material expenses, direct labor costs, and all overheads, variable and fixed, within the cost framework of a product.

Net Operating Income

The amount left from a company's sales revenue after subtracting the costs of running the business, excluding tax and interest expenses.

Variable Costing

A managerial accounting method that only considers variable costs as product costs, with fixed overhead costs treated as period expenses.

Variable Costing

A costing method that includes only variable manufacturing costs — direct materials, direct labor, and variable manufacturing overhead — in the cost of a product.