Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following two categories
A)functional and residual
B)salvage and functional
C)physical and functional
D)residual and salvage

Question

Quizplus · Accepted Answer

Factors contributing to a decline in the usefulness of a fixed asset can be divided into physical factors such as wear and tear, decay or obsolescence, and functional factors such as changes in market demand, technological advances, or changes in production processes. Therefore, the best choice is C, physical and functional factors.

Factors Contributing to a Decline in the Usefulness of a Fixed