Technician a Says After the Initial Cost of Purchase, CNC

question 28

Multiple Choice

Technician A says after the initial cost of purchase, CNC equipment does not cost a shop owner any additional money to operate. Technician B says CNC equipment needs periodic maintenance and calibration. Who is correct?

• A) Technician A
• B) Technician B
• C) Both A and B
• D) Neither A nor B

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Definitions:

Extractable Ore

Refers to the portion of a mineral or natural resource deposit that can be economically and legally extracted or produced at the time of consideration.

Units-Of-Production Method

An approach to depreciation that allocates an asset's cost based on its use, output, or production, rather than passing time.

Amortization

The process of spreading out the cost of an intangible asset over its useful life or paying off a debt over time in regular installments.