Use of the Sum-Of-The-Years'-Digits Method

question 71

Multiple Choice

Use of the sum-of-the-years'-digits method

• A)results in salvage value being ignored.
• B)means the denominator is the years remaining at the beginning of the year.
• C)means the book value should not be reduced below salvage value.
• D)all of these.

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Definitions:

Marketing Concept Era

A period in marketing history during which businesses began to focus on meeting the needs and wants of consumers as a way to differentiate themselves from competitors.

Consumerism Era

A period characterized by the emphasis on consumer rights, the proliferation of goods and services, and the increase in consumption as a part of the economy.

Sales Era

A period in the history of marketing, roughly from the early to mid-20th century, characterized by a focus on selling products through aggressive sales techniques.