Explain How Someone Might Decide How Reliable Is "Reliable Enough

question 70

Essay

Explain how someone might decide how reliable is "reliable enough" for a measure. What settings might warrant more stringent criteria for reliability, and why?

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Definitions:

Depreciation Expense

Apportioning the cost of a concrete asset over its duration of use.

Units-Of-Activity

A depreciation method that allocates expense based on the actual usage or activity level of an asset.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.

Double-Declining-Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate.