Use of the Double-Declining Balance Method

question 42

Multiple Choice

Use of the double-declining balance method

• A) results in a decreasing charge to depreciation expense.
• B) means salvage value is not deducted in computing the depreciation base.
• C) means the book value should not be reduced below salvage value.
• D) all of these answers are correct.

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Definitions:

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to reduce costs and improve efficiency.

Purchasing

The act of acquiring goods or services, often for business purposes, to fulfill the needs of an organization or individual.

Procurement

The process of obtaining goods, services, or works from an external source, often via a tendering or competitive bidding process.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.