Dan Was a Team Supervisor in a Very Large Organization

question 176

True/False

Dan was a team supervisor in a very large organization when the refrigerator in their lunchroom stopped functioning. He started the paperwork on the day it died, then the refrigerator request went out for bid. After that, two middle managers needed to approve acceptance of the bid and document their decision, and the purchasing director had final approval. The refrigerator arrived six months later. Max Weber would have approved of the decision process and its documentation at Dan's company to back up such a refrigerator purchase.

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Definitions:

Useful Life

The estimated time period that an asset is expected to be used by a business or be productive.

Straight-Line Rate

A method of calculating the depreciation of an asset, which allocates an equal depreciation expense each year over the asset's useful life.

Double Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate, allowing for faster asset expense recognition.

Modified Accelerated Cost Recovery

A tax depreciation system in the U.S. that allows for the accelerated depreciation of property under certain conditions.