When Using PP&E as the Forecast Driver for Depreciation,which of the Following

question 26

Multiple Choice

When using PP&E as the forecast driver for depreciation,which of the following is most accurate?

• A)From both an ideal and a practical standpoint,the driver should be net PP&E.
• B)From both an ideal and a practical standpoint,the driver should be gross PP&E.
• C)Ideally,the driver should be net PP&E,but practically the driver should be gross PP&E.
• D)Ideally,the driver should be gross PP&E,but practically the driver should be net PP&E.

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Definitions:

Consumer

An individual who purchases goods or services for personal use rather than for manufacture or resale.

Liable

The state of being legally responsible for something, especially in the context of debts or legal judgments.

Warn Consumers

The act of informing consumers about potential risks, hazards, or defects associated with a product or service.

Foreseeable Misuse

The misuse of a product or service in a manner that could reasonably be predicted by the manufacturer or provider, potentially leading to harm or liability.