If the Cost Slope for an Activity Is $10,000 Per

question 50

Multiple Choice

If the cost slope for an activity is $10,000 per week,this means ______.

• A)the activity will cost $10,000 for each week that it is accelerated
• B)the primary firm will pay the contractor $10,000 for each week that the project is completed ahead of schedule
• C)the contractor will have to pay the primary firm $10,000 for each week beyond the expected date of completion
• D)the project leader will incur a penalty of $10,000 for each week that the project takes beyond expected date of completion

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Definitions:

Increasing-Balance

A method of calculating depreciation that applies a constant rate to the asset's net book value each year, resulting in increased depreciation charges over time.

Units-Of-Production

A depreciation method that allocates cost based on the units produced or the machine hours used during the period.

Straight-Line

A method of allocating the cost of a tangible asset over its useful life in equal yearly amounts.

Carrying Amount

The value at which an asset is recognized in the balance sheet after deducting accumulated depreciation and impairment losses.