All of the Following Factors in Computing Depreciation Are Estimates

question 54

Multiple Choice

All of the following factors in computing depreciation are estimates except

• A) cost.
• B) residual value.
• C) salvage value.
• D) useful life.

---

Definitions:

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the overhead costs per unit of activity.

Casting Department

A specialized division in manufacturing where molten material is poured into molds to form products.

Predetermined Overhead Rate

A rate calculated before a period begins, used to apply manufacturing overhead costs to jobs based on a certain activity, such as direct labor hours.

Machine-Hours

A measure of the amount of time a machine is operated, used in cost accounting to allocate expenses based on machine usage.