A Characteristic of a Fixed Asset Is That It Is

question 15

Multiple Choice

A characteristic of a fixed asset is that it is

• A)used in the operations of a business
• B)a short-term investment
• C)intangible
• D)held for sale in the ordinary course of the business

---

Definitions:

General Factory

A place where a wide range of items may be manufactured, typically not limited to a specific product line or process.

Direct Labor-Hours

Another measure for the worker-hours spent directly on the manufacturing of goods, important for tracking production efficiency and labor costs.

Overhead Rate

The rate at which indirect costs are allocated to products or services, often used in calculating the total cost of production.

Fixed Overhead

Regular, fixed costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.