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What are expenditures that keep a machine in good repair but that do not extend the useful life of a asset?
Expenditures that keep a machine in good repair but do not extend its useful life are typically classified as maintenance costs. These include routine repairs, servicing, and parts replacement that restore the machine to its operational state without enhancing its functionality or lifespan. Examples are oil changes, minor repairs, and regular inspections. Such costs are often expensed in the period they are incurred rather than capitalized.
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What are expenditures that add to the utility of fixed assets for more than one accounting period?
Expenditures that add to the utility of fixed assets for more than one accounting period are typically capital expenditures (CapEx). These include costs for acquiring, upgrading, or improving fixed assets, such as machinery, buildings, or vehicles, which enhance their value or extend their useful life. Examples include major renovations, equipment purchases, and installation costs. Unlike operating expenses, these costs are capitalized and depreciated over their useful life on the balance sheet.
Is repaving a parking lot considered a capital expenditure?
Yes, repaving a parking lot is generally considered a capital expenditure. This is because it involves a significant investment intended to improve the property’s value and extend its useful life. Capital expenditures are typically associated with long-term assets, and repaving falls into that category as it enhances the functionality and aesthetics of the property.
What is the general rule for cost inclusion for plant assets?
The general rule for cost inclusion for plant assets is that all costs necessary to acquire the asset and prepare it for its intended use should be capitalized. This includes the purchase price, transportation costs, installation expenses, and any other expenditures directly attributable to bringing the asset to its operational state. Additionally, costs incurred for improvements or enhancements that extend the asset's useful life or increase its value may also be included. Routine maintenance and repairs, however, should be expensed as incurred.
Dfine the cost of plant assets?
The cost of plant assets, also known as property, plant, and equipment (PP&E), includes all expenditures necessary to acquire the asset and prepare it for its intended use. This encompasses the purchase price, shipping and handling fees, installation costs, and any other expenses directly related to bringing the asset to operational condition. Additionally, costs for improvements or upgrades that extend the asset's useful life may also be included. However, routine maintenance and repairs are typically expensed as incurred and not capitalized as part of the asset’s cost.
Is depreciation a direct or indirect cost?
Depreciation can be either a direct cost or an indirect cost, or it can be both direct and indirect.Let's illustrate this with the depreciation of a machine used in Department 23 of a manufacturer. The depreciation on that machine is a direct cost for Department 23. It is direct because it is traceable to Department 23 without any allocation.The depreciation of this same machine will be an indirect cost of the products manufactured with that machine. It is indirect because the depreciation is allocated to the products. Perhaps the machine in Department 23 has depreciation of $50,000 per year (cost of machine of $500,000 divided by 10 years of useful life). The $50,000 of annual depreciation is then assigned or allocated to products based on the number of hours that products use the machine. For example, if the manufacture expects 20,000 machine hours of use in the current year, then it assigns or allocates $2.50 ($50,000/20,000) per machine hour to each product using the machine. If Product #189 requires one hour of this machine's time, Product #189 will have $2.50 as part of its indirect costs. Indirect manufacturing costs are also referred to as manufacturing overhead, factory overhead, or burden.
Will the regular cleaning of home furniture extend its useful life?
Regular care and cleaning of home furniture will extend its useful life. Routinely cleaning your home furniture will allow you to prevent problems that arise from lack of care and will allow you to find and repair, if possible, any normal wear-and-tear.
What are expenditures that add to the utility of fixed assets for more than one accounting period?
Expenditures that add to the utility of fixed assets for more than one accounting period are typically capital expenditures (CapEx). These include costs for acquiring, upgrading, or improving fixed assets, such as machinery, buildings, or vehicles, which enhance their value or extend their useful life. Examples include major renovations, equipment purchases, and installation costs. Unlike operating expenses, these costs are capitalized and depreciated over their useful life on the balance sheet.
What is the world's useful machine?
What the most useful machine is, is a matter of opinion. Some would argue that the wheel is the most useful machine, and others would argue that the lever is the most useful.
How useful are machine?
A machine saves you force, changes distance, and changes direction. Those are the three ways in science that why machines are useful.
How do you useful technology to machine?
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What is the most useful machine?
the lever
How are proteins useful to our bodies?
They are very useful to our body as they are needed for growth and tissue repair
What is the worlds most useful machine?
the lever
What is the most useful simple machine?
bicycle
Is a measure of how much work put into a machine is changed to into useful work by the machine?
Efficiency
How much work put into a machine is changed to useful work put out by the machine?
90%
What do you think is the most useful machine for a student?
The computer.
