Which Method Does Not Deduct Residual Value in Calculating Depreciation

question 42

Multiple Choice

Which method does not deduct residual value in calculating depreciation expense?

• A)Straight-line method
• B)Units-of-production method
• C)Declining-balance method
• D)None of these
• E)All of these

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of finished goods.

Fixed Costs

Expenses that do not change in total despite fluctuations in production levels or sales volume.

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specified period of time, providing insight into its financial performance.

Absorption Costing

An accounting method where all manufacturing costs, including both fixed and variable costs, are allocated to produced units.