The Methods of Amortization Based Upon Output Assume That Obsolescence

question 150

True/False

The methods of amortization based upon output assume that obsolescence will not significantly affect the usefulness of the asset.

---

Definitions:

Push Manufacturing

The traditional approach to manufacturing in which products are manufactured according to a production schedule based on estimated sales; the schedule pushes product into inventory before customer orders are received.

Make to Order

A production strategy where manufacturing starts only after a customer places an order, tailoring products to specific customer requirements.

Lean Environment

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value activities.

Raw Materials

Basic materials used in the production process, not yet transformed into final products.