Short-Run Costs That Do Not Depend on the Level of Output

question 113

Multiple Choice

Short-run costs that do not depend on the level of output are

• A) total fixed costs only.
• B) total variable costs only.
• C) total costs only.
• D) both total variable costs and total costs.

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Definitions:

Depreciation Expense

The amount of depreciation charged in the income statement, representing the cost allocated for the use of fixed assets during an accounting period.

Estimated Useful Life

The expected period over which a fixed asset is projected to be usable by a business, affecting its depreciation calculation.

Double-Declining-Balance Method

An accelerated depreciation method where twice the straight-line depreciation rate is applied to the diminishing balance of an asset's book value.

Total Depreciation Expense

Total Depreciation Expense is the cumulative amount of depreciation that has been charged on a company's assets over a specific period to account for the reduction in value due to wear and tear, age, or obsolescence.