The Number of Customers That Bob's Barbecue Serves Varies Considerably

question 165

Multiple Choice

The number of customers that Bob's Barbecue serves varies considerably from hour to hour. In determining the number of cash registers to install, they should use

• A) average demand.
• B) peak demand.
• C) low demand.
• D) high demand.
• E) normal demand.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, which can be recovered through disposal.

Depreciation Expense

The distribution of a physical asset's cost throughout its lifespan.

Double Declining-Balance Method

An accelerated depreciation method that uses up to twice the straight-line rate multiplied with the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.

Equipment Purchase

Equipment purchase involves acquiring physical assets, such as machinery or office equipment, that are used in the operations of a business.