Practicing Success
What is the unforeseen obsolescence of fixed capital assets during production process known as? |
Consumption of fixed capital Revenue loss Capital loss None of the above |
Capital loss |
Normal wear and tear of the fixed capital assets is known as depreciation of the asset. It is a gradual process which is spread over a long period of time and is foreseen. Whereas, the unforeseen obsolescence of fixed capital assets during production process is known as capital loss. |