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

question 231

Multiple Choice

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48000 that will produce an estimated 100000 units over its useful life. Estimated salvage value at the end of its useful life is $4000. What is the depreciation cost per unit?

• A) $4.40
• B) $4.80
• C) $.44
• D) $.48

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Definitions:

Unconditional Positive Regard

A concept in psychology that implies complete acceptance and support of a person regardless of what they say or do, particularly in a therapist-client relationship.

Power Motivation

The drive to influence others and achieve a position of authority or control in a social or professional context.

Intrinsic Goals

Personal growth, affiliation, and community feeling.

Personal Growth

An individual’s process of developing self-awareness, knowledge, and improving personal skills and qualities over time.