In calculating depreciation and amortization for tangible assets, physical factors that limit service lives include all of the following except:
A)ordinary wear and tear from use.
B)chemical action such as rust.
C)the effects of wind and rain.
D)changes in production processes.
E)none of the above.

Question

Quizplus · Accepted Answer

The physical factors that limit service lives for tangible assets include ordinary wear and tear, chemical action such as rust, and the effects of wind and rain. However, changes in production processes are not a physical factor that limits the service life of tangible assets but rather a technological factor that may render the asset obsolete or less useful over time. Therefore, option D is the correct answer.

In Calculating Depreciation and Amortization for Tangible Assets, Physical Factors