In Calculating Depreciation

question 97

Multiple Choice

In calculating depreciation:

• A)Straight-line depreciation is higher than double declining balance depreciation in the early years.
• B)Straight-line depreciation is higher than double declining balance depreciation in the later years.
• C)Double declining balance is a method of straight-line depreciation.
• D)MACRS depreciation requires that salvage value be taken into account.

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Definitions:

Project Management

The utilization of techniques, abilities, expertise, and experience to meet particular project goals according to the project acceptance standards within established boundaries.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Sales Volume

The total quantity of products or services sold by a company within a specific period, often used as a measure of business activity.