Which of the Following Is Not a Major Characteristic of a Property

question 48

Multiple Choice

Which of the following is not a major characteristic of a property, plant, and equipment asset?

• A)Possesses physical substance
• B)Acquired for resale
• C)Acquired for use
• D)Yields services over a number of years

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Definitions:

Production Period

The phase in which a company is engaged in the creation or manufacturing of goods.

Applied Factory Overhead

The allocation of estimated manufacturing overhead cost to individual units of production.

Direct Labor

The labor costs associated with workers who physically construct a product or are directly involved in providing a service.

Continuous Process

A manufacturing process where production runs 24/7, often used in industries like chemicals and oil refining.