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Scenario 10.2 Use the Following to Answer the Questions

question 43

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Scenario 10.2
Use the following to answer the questions.
Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional line is that there are more departure times and more stops in smaller towns along the way.
Refer to Scenario 10.2. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of

Definitions:

Depreciate

The structured allocation of a material asset's cost over its effective life.

Amortize

The process of spreading the cost of an intangible asset over its useful life or a debt over a specified period of time for accounting and tax purposes.

Deplete

Deplete means to use up or exhaust the supply or reserves of a natural resource, often associated with mining, oil extraction, and logging operations.

Cash Expenditures

Payments by cash or cash equivalents to acquire goods, services, or assets.