Question

Obsolescence of a depreciable asset may be caused by
(I) Technological changes.
(II) Improvement in production method.
(III) Change in market demand for the product or service output.
(IV) Legal or other restrictions.
The correct option is -

• A. Only (I) above
• B. Both (I) & (II) of the above
• C. All (I), (II), (III) & (IV) of the above
• D. Only (IV) of the above

Answer 1

The correct option is C All (I), (II), (III) & (IV) of the above

Advances in technology can lead to supply curve shifts and changes in the demand for one product over another the costs of production and create new products to meet the changing tastes and preferences of consumers. Factors that can cause a shift in the demand curve are changes in income, .