Obsolescence

Multiple Choice

Obsolescence:

A) Occurs when an asset is at the end of its useful life.
B) Refers to a plant asset that is no longer useful in producing goods and services.
C) Refers to the insufficient capacity of a company's plant assets to meet the company's productive demands.
D) Occurs when an asset's salvage value is less than its replacement cost.
E) Does not affect plant assets.