In Computing Depreciation, Residual Value Is

question 259

Multiple Choice

In computing depreciation, residual value is

• A) the fair value of a plant asset on the date of acquisition.
• B) subtracted from accumulated depreciation to determine the plant asset's depreciable cost.
• C) an estimate of a plant asset's value at the end of its useful life.
• D) ignored in all the depreciation methods.

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Definitions:

Inventory Investment

The purchase of goods and materials for the purpose of storing them for future sale or use in production.

Level of Inventory

Indicates the quantity of goods or materials a company has in stock at a given time, a critical factor in supply chain and operations management.

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending and saving.

Control

In an experiment or study, the standard to which comparisons are made; in management, the process of directing and regulating processes, systems, or organizations.