If a Business Changes the Estimated Useful Life,or Estimated Residual

question 146

True/False

If a business changes the estimated useful life,or estimated residual value,of a plant asset,depreciation expense must be recalculated.

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Definitions:

Safety Stock

Extra inventory kept on hand to prevent stockouts caused by variations in supply and demand.

Lead Time

The time interval between the initiation and completion of a process, such as the period from placing an order to its delivery.

Safety Stock

Inventory held in reserve to guard against stockouts caused by variability in demand or supply chain delays.

Lead Time

The time interval from the initiation of a process (such as placing an order) to its completion (such as the delivery of goods or services).