For Income Statement Purposes, When Is Depreciation Expense Considered to Be

question 129

Multiple Choice

For income statement purposes, when is depreciation expense considered to be a variable expense?

• A) when units-of-output method is used
• B) when double-declining-balance method is used
• C) when straight-line method is used
• D) Never

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Definitions:

Government Purchases

Expenditures made by the government sector on goods and services to fulfill its various functions and responsibilities.

Transfer Payments

Payments made by governments to individuals without requiring any goods or services in return, such as welfare or social security.

Goods and Services

The output of an economy's business activities, encompassing tangible products (goods) and intangible offerings (services).

Progressivity

Refers to the degree to which a tax system taxes higher incomes at higher rates.