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Assets are retired for one of three reasons: physical factors or economic factors—or a combination of both. So, which of the following do you think is an example of the economic factor?
A) wear and tear
B) decay
C) casualty factors which hinder the asset from indefinitely
D) B and C
E) None
C) casualty factors which hinder the asset from indefinitely
C) is correct,
A) wear and tear yes as the older an asset is greater use made of it, it's commercial value is deteriorated as resale is based on remaining expected useful life, as viewed in the design by manufacturer.
storm damage or weather damage, rusting for instance an asset will be retired earlier.
there is also technical obsolence like in mobile phone industry.
Agree with the dignified colleagues
C is correct ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
