Dover Airlines is a safety-conscious entity. In addition to government mandated safety assets such as drop-down masks and seat belts, Dover employs parachute technology. In case of disaster, the plane can deploy large parachutes from the rear of the plane, and the impact will be softened. These parachutes are expensive, but have already saved hundreds of lives over the years. The parachutes can be considered PP&E even though they are not mandated or vital to the wellbeing of the company.

Question

Quizplus · Accepted Answer

Parachutes, although not mandated, are used for safety measures and directly contribute to the operational safety and potentially the financial performance of Dover Airlines by potentially saving lives and reducing liability in case of accidents. Thus, they can be considered Property, Plant, and Equipment (PP&E) as they are tangible assets used in the operations of the business.

Dover Airlines Is a Safety-Conscious Entity