Final answer:
A fully depreciated fixed asset should not necessarily be disposed of if it remains operational and meets the needs of the business.
Step-by-step explanation:
Whether a fully depreciated fixed asset should be disposed of depends on continuing usefulness and impact on costs, among other factors. If a fixed asset, such as a large display or other electronic component, is still operational and servicing the needs of the business, it may be more cost-effective to continue using it rather than to incur the expenses associated with acquiring a new replacement.
This approach also aligns with a shift towards sustainability, where the environmental cost of manufacturing new goods and disposal of old items is taken into consideration. This sustainability shift places higher value on durability, repairability, and high-quality goods that can potentially last a lifetime.
Given these considerations, businesses may find that holding onto and maintaining fully depreciated assets can be a sound decision both financially and environmentally, especially when repairs are more affordable than replacements.