The Antarctica Co

question 29

Multiple Choice

The Antarctica Co. acquired a machine on January 1, 2016, at a cost of $60,000. The machine is expected to have a ten-year life and a residual value of $5,000. The estimated lifetime output from the machine is expected to be 55,000 units. Under which of the following depreciation methods would the depreciation charge be the greatest in 2016 if 9,100 units were produced during the year?

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

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Definitions:

Standard Deviation

A measure of the dispersion or spread in a set of data; it tells us how much the values in a data set vary from the mean.

Population Standard Deviation

A measure of the variability or diversity within a full set or entire population of data.

Confidence Interval

A range of values, derived from statistical analysis, that is likely to contain the true value of an unknown population parameter.

Margin of Error

A statistical measure that represents the amount of error in a survey's results, which indicates the range within which the true value is expected to lie with a certain level of confidence.