The Formula for Calculating Straight-Line Depreciation Is

question 61

Multiple Choice

The formula for calculating straight-line depreciation is:

• A) Cost divided by useful life in years.
• B) Depreciable cost divided by the useful life in years.
• C) Cost plus residual value divided by the useful life in years.
• D) Depreciable cost divided by useful life in units.
• E) Cost divided by useful life in units.

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Definitions:

Salespersons

Individuals who sell goods and services to customers, aiming to meet customer needs and achieve sales targets.

Absorption Costing

An accounting approach that incorporates all costs of production, including both variable and fixed overheads, into the price of a product.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead costs as period expenses.

Manufacturing Cost

This encompasses the total expenses related to producing goods, including costs for materials, labor, and overhead.