To Calculate the Depreciation of an Asset,you Need to Know

question 123

Multiple Choice

To calculate the depreciation of an asset,you need to know all of the following EXCEPT the ____.

• A) asset's original cost
• B) asset's useful life
• C) asset's type
• D) rate of depreciation

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Definitions:

Short-term Pricing

Pricing strategies focused on immediate objectives rather than long-term goals, such as clearing out inventory or entering a new market.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Fixed Costs

Costs that do not change with the level of goods or services produced in the short term.

Short Run

A period in economics where at least one factor of production is fixed, limiting the firm's ability to adjust to changes in market demand.