Obsolescence

Multiple Choice

Obsolescence:

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