In Economics,the Cost of Something Is

question 51

Multiple Choice

In economics,the cost of something is

• A)the dollar amount of obtaining it.
• B)always measured in units of time given up to get it.
• C)what you give up to get it.
• D)often impossible to quantify,even in principle.

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Definitions:

Straight-Line Depreciation

A method of accounting in which an asset's cost is evenly distributed over its useful life to represent its consumption.

Depreciable Cost

The total cost of an asset that is subject to depreciation over its useful life, excluding any salvage value.

Depreciation Expense

The amount of depreciation charged in the income statement, representing the cost allocated for the use of fixed assets during an accounting period.

Estimated Useful Life

The expected period over which a fixed asset is projected to be usable by a business, affecting its depreciation calculation.