The Difference Between the Cost of an Asset and the Accumulated

question 135

Multiple Choice

The difference between the cost of an asset and the accumulated depreciation for that asset is called

• A)Depreciation Expense.
• B)Unearned Depreciation.
• C)Prepaid Depreciation.
• D)Depreciation Value.
• E)Book Value.

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Definitions:

Standard Variable Overhead Rate

A predetermined rate used to allocate variable overhead costs to units of production, based on expected activity levels.

Practical Standards

Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.

Standard Quantity

This term refers to the amount of input (materials, labor, etc.) that should be used in the production of a unit of goods under normal conditions.

Standard Price

A pre-determined cost allocated to a single unit of product or service, used for budgeting and performance evaluation.