Additions and Improvements

question 115

Multiple Choice

Additions and improvements

• A) occur frequently during the ownership of a plant asset.
• B) normally involve immaterial expenditures.
• C) increase the book value of plant assets when incurred.
• D) typically only benefit the current accounting period.

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Definitions:

Identical Products

Goods that are exactly the same in every characteristic, quality, and performance, with no differentiation.

Wasteful Duplication

The unnecessary repetition of tasks or production, often leading to inefficiency and increased costs.

Excess Capacity

A situation where a firm is operating below its maximum production capability and can produce more with the existing resources.

Physical And Human Capital

Assets including machinery, buildings (physical capital) and the skills, knowledge, and experience possessed by an individual or population (human capital).