The Two Items That Must Be Estimated with Respect to a Plant

question 32

Short Answer

The two items that must be estimated with respect to a plant asset in order to properly allocate cost to the affected accounting periods are _______________ and _______________.

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Definitions:

Nondurable Goods

Items that are consumed or are only useable for a short period before they need replacement due to wear or consumption.

Services

Tasks or activities performed by individuals or companies for the benefit of others, typically in exchange for payment, and are intangible in nature.

Disposable Income

Funding available to households for their spending and saving plans post income tax cuts.

Savings

The portion of income that is not spent on consumption but set aside for future use, often in a bank account or investment vehicle.