Which of the following typically would cause the service life of an asset to be less than its physical life?
A) The company no longer provides the products or services associated with the use of the asset.
B) Suppliers may develop new technologies that are more efficient.
C) The expected rate of technological change may shorten service life.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All of these factors can lead to an asset's service life being shorter than its physical life. When a company discontinues products or services related to an asset, when new, more efficient technologies are developed by suppliers, or when rapid technological changes occur, the usefulness or economic viability of an asset can diminish before its physical condition deteriorates.

Which of the Following Typically Would Cause the Service Life