An Estimate, Also Called a Damage Report or Damage Appraisal

question 15

True/False

An estimate, also called a damage report or damage appraisal, calculates the cost of parts, materials, and labor for repairing a collision-damaged vehicle.

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Definitions:

Salvage Value

The estimated resale value of an asset at the end of its useful life, used in calculating depreciation expenses.

Half-Year Convention

A tax and accounting method that treats all assets acquired or disposed of during a year as being acquired or disposed at the midpoint of that year.

Sum-Of-The-Years'-Digits

An accelerated depreciation method that applies a decreasing fraction to the depreciable cost of an asset over its useful life.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, reflecting the asset's decrease in value over time.