If You Decide to Take a Detour That Adds 50

question 11

Multiple Choice

If you decide to take a detour that adds 50 miles above the 300 miles, what is the cost of the detour?

• A)$10
• B)$70
• C)$270
• D)$200

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Definitions:

Straight-Line

A technique for computing depreciation that uniformly distributes an asset's cost across its lifespan.

Units-Of-Production

A depreciation method that allocates an asset's cost based on its usage or production levels.

GAAP Methods

GAAP methods refer to accounting principles and guidelines set by the Financial Accounting Standards Board in the United States for preparing financial statements.

MACRS

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation used in the United States for tax purposes, allowing for quicker cost recovery of property and equipment.