The Declining-Balance Method of Depreciation Is Appropriate for Companies That

question 73

True/False

The declining-balance method of depreciation is appropriate for companies that expect their equipment or other assets to become obsolete fairly rapidly.

---

Definitions:

Revenue Volume Variance

This reflects the difference between actual revenue and the expected revenue that was based on the budget, often attributed to changes in sales volume.

Planned Selling Price Sep## Actual Units Sold

This represents the comparison between the pre-established price at which goods were intended to be sold and the actual number of units sold.

Significant Variances

Major discrepancies between planned and actual figures in budgets, costing, or any financial metric.

Favorable Cost Variance

A situation where the actual cost of a product or service is less than its budgeted or standard cost.