As Time Passes, Fixed Assets Other Than Land Lose Their

question 59

Multiple Choice

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called

• A) equipment allocation
• B) depreciation
• C) accumulation
• D) matching

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Definitions:

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on managing processes, materials, and people effectively.

Service Attribute

A feature or characteristic that adds value to a service, influencing customer satisfaction and preferences.

Intangible Product

A product that cannot be touched or physically measured, such as digital goods, services, or intellectual property.

Easy To Store

A characteristic of goods or materials that allows them to be stored without requiring special conditions or large amounts of space, making them convenient for inventory management.