Cordo Ltd Uses the Units-Of-Production Depreciation Method

question 82

Multiple Choice

Cordo Ltd. uses the units-of-production depreciation method. A new asset is purchased for $30,000 that will produce an estimated 90,000 units over its useful life. Estimated residual value is $3,000. What is the depreciable cost per unit?

• A) $3.30
• B) $3.00
• C) $0.33
• D) $0.30

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Definitions:

Long-Term Memory

The phase of memory responsible for storing information for an extended period, ranging from a few days to a lifetime.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting only a fraction of a second.

Short-Term Memory

The capability to retain a minimal volume of information in an instantly accessible condition for a short time frame.

Working Memory

A mental system that has a restricted capacity, tasked with momentarily maintaining information for processing.