Physical Depreciation Occurs When Changes in Customer Needs Causes a Fixed

question 41

True/False

Physical depreciation occurs when changes in customer needs causes a fixed asset to no longer provide services for which it was intended.

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Definitions:

Cost Of Goods Manufactured

The total cost associated with producing goods, including materials, labor, and overhead, that is ready for sale during a specific time period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct labor and materials.

Underapplied Manufacturing Overhead

This occurs when the actual manufacturing overhead costs exceed the overhead allocated to products during a period, indicating insufficient cost allocation.

Overapplied Manufacturing Overhead

This occurs when the actual manufacturing overhead costs are less than the overhead allocated to products during a period.