MGMT 20000 Chapter Notes - Chapter 7: Regional Policy Of The European Union, Asset
30 Jun 2016
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Tangible: land, land improvements, buildings, equipment, natural resources. Learning objective 1 identify the major types of property, plant, and equipment. Capitalize: recording and expenditure as an asset. Recorded at: cost of asset + all expenditures necessary to get it ready for use. Land: includes land used for operations, cannot be depreciated. Land improvements: parking lots, sidewalks, driveways, landscapes, lighting systems, fences, sprinklers, etc. Depreciation: the allocation of the cost of a tangible asset over its service life. Admin offices, retail stores, manufacturing facilities, and storage warehouse. Machinery used in manufacturing computers and other office equipment, vehicles, furniture and fixtures. Recurring costs not part of the cost of equipment. Purchase of more than on asset for one purchase price. Allocate total purchase price based on individual fair values. Depletion: allocation of the cost of a natural resource over its service life. Identical to the activity- based method of recording depreciation. Learning objective 2 identify the major types of intangible assets.
