All Plant Assets (Fixed Assets) Must Be Depreciated for Accounting

question 154

True/False

All plant assets (fixed assets) must be depreciated for accounting purposes.

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Definitions:

Plantwide Predetermined Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by the total estimated amount of the allocation base, applied throughout an entire plant or facility.

Machine-Hours

The total number of hours that machinery is in operation, used as a basis for allocating manufacturing overhead costs in a production environment.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.

Direct Labor-Hours

A measure of the work input in terms of hours that can be directly attributed to the production process.