Which of the Following Statements About Tangible Long-Lived Assets Is

question 220

Multiple Choice

Which of the following statements about tangible long-lived assets is not correct?

• A)Depreciation and maintenance are expenses associated with the use of tangible long-lived assets.
• B)Assuming no additions,replacements,or extraordinary repairs,the carrying value of a long-lived asset is never more than its original cost.
• C)The cost of a long-lived asset minus the Accumulated Depreciation is called the carrying value of the asset.
• D)All long-lived assets are depreciated as they are used in the business.

---

Definitions:

Operating Departments

Divisions or units within an organization that are directly involved in the core operations or primary purpose of the business.

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods, distinct from the operational costs of running the equipment.

Number of Setups

A measurement in manufacturing that refers to how many times equipment is adjusted or changed to produce different products.

Maintenance Department

The section of an organization responsible for maintaining and repairing its facilities, equipment, and vehicles to ensure operational efficiency.