If Technology Changes Rapidly, a Firm Should

question 128

Multiple Choice

If technology changes rapidly, a firm should

• A) expense plant asset immediately because of the uncertainty of future benefits.
• B) depreciate plant assets over long periods of time.
• C) consider an accelerated rate of depreciation.
• D) use the straight-line method of depreciation as it is the easiest.

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Definitions:

Car's Stereo

An audio system installed in an automobile that plays music or broadcasts from various sources, enhancing the driving experience.

Music Fan

An individual who has a strong interest or enthusiasm for music and its various genres, often following artists and attending concerts.

Side Effects

Unintended consequences of an action or decision that can be either beneficial or harmful.

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.