Plant Assets Are Depreciated Because

question 82

Multiple Choice

Plant assets are depreciated because

• A)the accrual basis of accounting requires matching of costs to revenues.
• B)some plant assets last longer than others.
• C)useful lives cannot be reasonably estimated.
• D)the replacement cost of plant assets may fluctuate over time.

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Definitions:

Marginal Product

The additional output that is produced as a result of using one more unit of a particular input, while keeping other inputs constant.

Marginal Product

The additional output resulting from the use of one more unit of a productive input, holding other inputs constant.

Production Function

An equation that describes the maximum output of a good achieved from a given number of inputs.

Input

The inputs such as labor, materials, or resources utilized in creating products and services.