The Formula for Calculating Straight-Line Depreciation Is

question 191

Multiple Choice

The formula for calculating straight-line depreciation is

• A)Depreciable cost divided by the useful life in years
• B)Cost plus residual value divided by the useful life in years
• C)Depreciable cost divided by useful life in units
• D)Cost divided by useful life in years
• E)Cost divided by useful life in units

---

Definitions:

Variable Cost

Costs that vary in direct proportion to changes in a business's production volume or level of activity.

Unit Product Costs

The total cost associated with producing a single unit of product, including direct materials, direct labor, and overhead.

Intermediate Product

A product that requires further processing before it becomes a finished good.

Processed Further

Refers to additional operations or treatments applied to a product after its initial processing stage.