A Model of a Business in Which Customers Walk into the Store

question 13

Multiple Choice

A model of a business in which customers walk into the store at random times employs a model that uses ____ rather than precise and exact equations.

• A)probabilistic approximations
• B)numerical approximations
• C)statistical approximations
• D)algebraic approximations

---

Definitions:

Straight-Line

A technique for computing an asset's depreciation by distributing its cost evenly across each year of its expected useful life.

Double-Declining-Balance Method

An accelerated depreciation method that doubles the book value of an asset to calculate annual depreciation expense.

Residual Value

The approximated value of an asset at the conclusion of its period of utility.

Depreciation

Systematically dividing the cost of a tangible asset across the years it is expected to last.