Each of the Following Is Used in Computing Revised Annual

question 180

Multiple Choice

Each of the following is used in computing revised annual depreciation for a change in estimate except

• A) book value.
• B) cost.
• C) depreciable cost.
• D) remaining useful life.

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Definitions:

Opportunity Cost

The value of the next best alternative that is forgone when making a decision.

Hardware Store

A retail business specializing in selling tools, building materials, and supplies for home improvements, repairs, and maintenance projects.

Building Uses

Pertains to the designated purposes or activities for which a building is designed, occupied, or intended to be used.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the additional amount earned by employing resources in their current activity over their next-best alternative.