Assuming an Asset Is Used Evenly Over a Four-Year Service

question 19

Multiple Choice

Assuming an asset is used evenly over a four-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year?

• A) Straight-line.
• B) Units-of-production.
• C) Double-declining balance.
• D) Sum-of-the-year's digits.

---

Definitions:

Raw Materials Used

The total quantity and cost of raw materials employed in the production process during a specific period.

Direct Labour

The wages and expenses directly associated with the production of goods, representing labor that can be directly allocated to products.

Manufacturing Overhead

The indirect factory-related costs that are not directly tied to a specific product.

Cost per Unit

The total cost associated with producing one unit of a product, including both fixed and variable costs.