Match Each of the Following Terms with the Appropriate Definitions

question 196

Short Answer

Match each of the following terms with the appropriate definitions.
a. Extraordinary repairs
b. Obsolescence
c. Leasehold improvements
d. Depletion
e. Salvage value
f. Book value
g. Land improvements
h. Copyright
i. Inadequacy
j. Patent
_____ 1. An estimate of an asset's value at the end its benefit period.
_____ 2. Major repairs that extend the useful life of a plant asset beyond its original estimate.
_____ 3. Alternations or improvements to leased property made by the lessee.
_____ 4. A right granted that gives its owner the exclusive privilege to publish and sell musical, literary, or artistic work during the life of the creator plus 70 years.
_____ 5. A condition where a plant asset is no longer useful in producing goods or services with a competitive advantage.
_____ 6. The total cost of a plant asset less its accumulated depreciation.
_____ 7. The process of allocating the cost of natural resources to the periods when they are consumed.
_____ 8. An exclusive right granted to its owner to manufacture and sell an item, or to use a process, for 20 years.
_____ 9. The insufficient capacity of plant assets to meet the company's productive demands.
_____ 10. Assets that increase the benefits of land, have a limited useful life, and are subject to
depreciation.

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Definitions:

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as rent and salaries of managers.

Variable Overhead

Costs that change in proportion to the level of production or activity within a business.

Direct Materials

Raw materials directly used in the manufacturing of a product, which can be directly attributed to the finished product.

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which are necessary for a business's operations regardless of output.