Explain the Comparative Fit Index (CFI)and How It Is Used

question 7

Essay

Explain the comparative fit index (CFI)and how it is used to determine fit.

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Definitions:

Building Appraised

The assessed value of a building, determined by a professional appraiser based on factors such as location, condition, and market trends.

Double-Declining-Balance

An accelerated depreciation technique that applies twice the depreciation rate of straight-line depreciation to hasten the reduction in an asset's recorded value.

Salvage Value

The estimated residual value of an asset after its useful life has ended, used in calculating depreciation.

Useful Life

The estimated period over which an asset is expected to be usable by an entity, contributing to its cash flows.