Which of the Following Is Implied by a Product with a Low

question 71

Multiple Choice

Which of the following is implied by a product with a low value density?

• A) the distribution system is more localized
• B) the product is more valuable
• C) the cost of shipping the product is negligible
• D) the product is processed in areas away from their original locations

---

Definitions:

Units-Of-Production Method

An approach to depreciation that allocates the cost of an asset over its useful life based on its output or usage, rather than the passage of time.

Scrap Value

The estimated resale value of an asset after its useful life is over and it can no longer be used as intended.

Double-Declining-Balance

A method that determines a depreciation amount for the first year that is approximately twice the straight-line rate.

Scrap Value

The predicted revenue from selling an asset at the conclusion of its serviceable life.