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:

Poor

This term refers to individuals or groups who lack sufficient financial resources to meet a basic standard of living.

Employment Discrimination

Unfair treatment or prejudice against employees or job applicants based on race, color, religion, sex, national origin, age, disability, or genetic information instead of job performance or qualifications.

Relatively Lower Wages

Wages that are lower when compared to a certain benchmark, such as the national average, industry standard, or a competing firm.

Minorities

Groups in a population that are smaller in number than the main group and may have different national, religious, linguistic, or cultural origins.