Which of the Following Is a Not Characteristic of Property

question 61

Multiple Choice

Which of the following is a not characteristic of property, plant and equipment (PPE) ?

• A)PPE are tangible items.
• B)PPE benefit more than one year.
• C)PPE are held for use in the ordinary course of business.
• D)PPE have fixed and determinable future cash flows.

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Definitions:

Allocation Base A

An allocation base is a measure or quantity, such as machine hours or labor costs, used to assign indirect costs to different products or services.

Allocation Base B

A criterion or standard used to distribute overhead costs among various cost objects.

Step-down Method

A cost allocation method used in accounting to distribute overhead costs to various cost objects based on a hierarchical sequence of allocation bases.

Custodial Services

These are services related to the maintenance and cleaning of buildings and facilities.