Which of the Following Is NOT True of Ordinary Repairs

question 10

Multiple Choice

Which of the following is NOT true of ordinary repairs?

• A) They primarily benefit the current accounting period.
• B) They can be referred to as operating expenditures.
• C) They maintain the expected productive life of the asset.
• D) They increase the productive capacity of the asset.

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Definitions:

Standard Labor Rate

The predetermined cost of labor per hour, used in budgeting and measuring efficiency against actual labor costs.

Actual Labor Hours

The real number of hours worked by employees, used in various calculations such as labor costing and efficiency analysis.

Raw Material

Basic materials that are used in the production process to create goods or finished products.