Obsolescence May Be the Most Important Component of Carrying Cost

question 106

Multiple Choice

Obsolescence may be the most important component of carrying cost because it happens so _____ and so _____.

• A)often;slow
• B)often;fast
• C)seldom;slow
• D)seldom;fast

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Definitions:

Current Maturities

Refers to the portion of long-term debt that is due to be paid within the next twelve months.

Long-term Debt

Financial obligations that are due for repayment beyond the current year or operating cycle.

Lease Liabilities

Financial obligations recorded on the balance sheet representing the present value of future lease payments.

Supplies

Items used in the operating activities of a business, not directly tied to the final product.