A Major Difference Between Current and Non-Current Assets Is That

question 72

True/False

A major difference between current and non-current assets is that the future benefits of current assets will expire in a short period of time, whereas the future benefits of all non-current assets will decline over a longer period.

---

Definitions:

Unit Costs

Unit Costs refer to the total expenditure incurred to produce, store, and sell one unit of a product, including all variable and fixed costs.

Variable

An element, feature, or factor that is liable to vary or change; in science and mathematics, a quantity that can assume any of a set of values.

Fixed Costs

Charges that are unaffected by changes in production or sales volumes, like lease payments, employee salaries, and insurance costs.

Fixed Costs

Financial obligations that do not fluctuate with changes in production levels or sales numbers, like rent, salary payments, and insurance premiums.