For Each of the Following Definitions, Select the Key Term

question 37

Essay

For each of the following definitions, select the key term from the list that relate to general capital assets and capital projects.
A. Bond anticipation notes
B. Infrastructure assets
C. Service Concession Arrangements
D. General capital assets
E. Capital projects funds
F. Asset impairment
G. Intangible assets
H. Depreciation
________ 1. Assets that lack physical substance and are nonfinancial in nature
________ 2. Short-term interest-bearing instruments issued by a government with a plan to replace with longer-term debt
________ 3. Roads, bridges, curbs and gutters, streets, sidewalks, and drainage systems installed for the common good
________ 4. Capital assets of a government that are not recorded in a proprietary or fiduciary fund
________ 5. Significant, unexpected decline in the service utility of a capital asset

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Definitions:

Current Cost

Current Cost is the cost that would be incurred to replace an asset or resource at its present value, reflecting its current market price rather than its historical cost.

Target Costing

A pricing strategy where a product’s selling price is determined first based on market conditions, and then the manufacturing cost is managed to ensure profitability.

Life Cycle Cost

Encompasses all costs associated with a product or asset over its entire life, from acquisition through disposal.

Cost-plus Price

An approach where the selling price of a product is fixed by appending a set markup to the product’s per-unit cost.