Determination of the Useful Life of an Asset and Choice

question 68

Multiple Choice

Determination of the useful life of an asset and choice of a depreciation method will affect all of the following except:

• A) The amount of operating income earned by an investment center for any given period.
• B) The investment base for purposes of calculating ROI.
• C) Amount of depreciation expense recorded for any given period.
• D) Net book value (NBV) of an asset as of any point in time.
• E) The opportunity cost of lost sales on alternative projects.

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Definitions:

Id

The unconscious system of the personality, which contains the life and death instincts and operates on the pleasure principle; source of the libido.

Iceberg Metaphor

A psychological model used to describe the conscious mind as the tip of the iceberg visible above water, with the unconscious mind as the larger mass below water.

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.