Mott Company Uses the Units-Of-Activity Method in Computing Depreciation

question 130

Multiple Choice

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $30,000 that will produce an estimated 100,000 units over its useful life. Estimated residual value at the end of its useful life is $2,500. What is the depreciation cost per unit (rounded to the nearest cent) ?

• A) $2.75
• B) $3.00
• C) $.28
• D) $.30

---

Definitions:

Steinberg And Scott

Reference to psychologists Laurence Steinberg and Elizabeth S. Scott, known for their work on adolescent development and legal implications.

Metacognitive Skills

Skills which enable an individual to understand, control, and manipulate their own cognitive processes.

Imaginary Audience

An individual’s mistaken assumption that others are as intrigued by and concerned about him as he is. A characteristic feature of adolescents’ self-focuses.

Improved Metacognitive Skill

Enhanced ability to understand, control, and manipulate one's own cognitive processes, such as learning and problem-solving.