If an Industrial Firm Uses the Units-Of-Production Method for Computing

question 2

Multiple Choice

If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will

• A) be constant.
• B) vary with unit sales.
• C) vary with sales revenue.
• D) vary with production.

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Definitions:

Resistance

A measure of an object's opposition to the flow of electric current, resulting in electrical energy being dissipated as heat.

Material's

Pertaining to the substance or substances from which something is or can be made, often highlighting properties or characteristics.

Flux Density

The number of magnetic lines contained in a certain area. The area measurement depends on the system of measurement.

Magnetic Strength

An indication of the magnetic intensity or the degree of magnetization of a material or magnetic field.