The Depreciation Method That Does Not Use Residual Value in Calculating

question 44

Multiple Choice

The depreciation method that does not use residual value in calculating the first year's depreciation expense is

• A) straight-line
• B) units-of-activity
• C) double-declining-balance
• D) sum-of-the-years-digits

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Definitions:

Operations Management

The area of management concerned with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods or services.

Contribution Margins

The amount by which a product's selling price exceeds its total variable costs, indicating the portion of sales that contributes to covering fixed costs.

Machine Hours

A measure of production time, representing the total hours a machine is operated within a specific period for manufacturing purposes.

Product Units

Individual items or quantities of a product that are produced or available for purchase.