Depreciation Expense for a Period Is Computed by Taking the

question 151

Multiple Choice

Depreciation expense for a period is computed by taking the

• A) original cost of an asset - accumulated depreciation.
• B) depreciable cost ÷ depreciation rate.
• C) cost of the asset ÷ useful life.
• D) market value of the asset ÷ useful life.

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Definitions:

Department Contribution Margin

A measure of a department's profitability, calculated as the difference between its sales and variable costs.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company's core operations.

Direct Departmental Expenses

Costs that can be directly attributed to a specific department within an organization, such as salaries of departmental staff.

Indirect Expenses

Expenses that are not directly tied to the production of goods or services, such as administrative and marketing costs.