The Book Value of Equipment Is Equal to Which of the Following

question 151

Multiple Choice

The book value of equipment is equal to which of the following?

• A)Cost of equipment plus the related accumulated depreciation.
• B)Accumulated depreciation less the related depreciation expense.
• C)Cost of equipment less the related accumulated depreciation.
• D)Accumulated depreciation plus the related depreciation expense.

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Definitions:

Mixed Costs

Expenses that have both fixed and variable components, changing in total with the level of activity but not in proportion.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with volume but remaining constant per unit.

Variable Cost

Costs that change in proportion to the good or service that a business produces, such as raw materials and direct labor expenses.