Use the Following Data ? Using the Straight-Line Method, the Amount of Depreciation Each

question 45

Multiple Choice

Use the following data: $$\begin{array} { l r } \text { Asset cost } & \$ 120,000 \\\text { Expected life } & 3 \text { years } \\\text { Estimated salvage value } & \$ 15,000\end{array}$$ ? Using the straight-line method, the amount of depreciation each year would be

• A) $35,000.
• B) $40,000.
• C) $45,000.
• D) $15,000.

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Definitions:

Planning Budget

A financial plan that estimates future revenues, expenses, and resources needed for a specific time period, helping manage resources effectively.

Revenue Variances

The differences between actual revenue generated and the expected (or budgeted) revenue over a specific period.

Spending Variances

Differences between the budgeted or standard cost of production and the actual cost incurred.

Customers Served

The number of clients or customers who have purchased a company's goods or services within a specific time frame.