Which of the Following Depreciation Methods Is Most Commonly Used

question 145

Multiple Choice

Which of the following depreciation methods is most commonly used for tax purposes?

• A)MACRS.
• B)Straight-line.
• C)Units-of-production.
• D)Double-declining balance.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Fixed

Pertains to expenses that remain constant for a given period regardless of the level of production or business activity.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Estimated

An approximation or informed guess of a value, quantity, or outcome based on available data.