What is the term for the estimated period during which a fixed asset can be used in production or service?

The term that describes the estimated period during which a fixed asset can be utilized for production or service is known as "Useful Life." This concept is crucial for businesses as it directly impacts financial planning and asset management. The useful life of an asset determines how long a company can expect to derive economic benefits from it before it becomes inefficient or obsolete.

Understanding the useful life helps in the calculation of depreciation, which spreads the cost of an asset over its useful life. This accounting practice allows businesses to accurately reflect the value of their assets in financial statements and helps in making informed decisions regarding asset replacement or disposal.

Other options, while they may seem relevant, do not accurately capture the financial and accounting implications associated with the concept of a fixed asset's utility over time. Descriptions like "Operational Duration" and "Asset Lifespan" may refer to similar ideas but are not the standard terminology used in accounting. "Depreciable Period" might imply the timeframe for depreciation but does not specifically emphasize the period of utility or productivity from the asset itself.