Part Commonality Refers to the Degree to Which a Component

question 136

True/False

Part commonality refers to the degree to which a component has more than one immediate parent.

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Definitions:

Asset Account

An account on a company's balance sheet that represents a resource controlled by the company from which future economic benefits are expected.

Depreciation

Systematically spreading the expense of a tangible asset across its life expectancy.

Asset Cost

The initial expense to acquire an asset, including purchase price and any additional costs necessary to get the asset ready for its intended use.

Useful Life

The expected period of time during which an asset is useful to the owning entity and contributes to its cash flows.