Most Organizations Should Operate at Maximum Capacity at All Times

question 79

True/False

Most organizations should operate at maximum capacity at all times.

---

Definitions:

Useful Life

The period over which an asset is expected to be usable by an entity, affecting its depreciation or amortization.

Straight-line Method

A method of calculating depreciation of an asset where the cost is evenly allocated over its useful life, resulting in a consistent expense each period.

Accounting Standards

Rules and guidelines set by authoritative bodies that dictate how financial transactions and statements should be reported and maintained.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.