Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

Question

Quizplus · Accepted Answer

Fixed assets are long-term assets, which require proper cost allocation and matching procedures over their entire useful life. These procedures are not required for routine expenditure systems, which only deal with short-term expenses. Therefore, fixed asset accounting systems are more complex and sophisticated than routine expenditure systems.

Fixed Asset Accounting Systems Include Cost Allocation and Matching Procedures