What Is the Term for the Annual Cost of Wear

question 33

Multiple Choice

What is the term for the annual cost of wear of any asset that is expected to be in use for more than a year?

• A)Diminishing returns.
• B)Marginal cost.
• C)Depreciation.
• D)Sunk cost.
• E)Explicit cost.

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Definitions:

Journal Entry

A record of a transaction in the accounting journal that details which accounts are affected and in what way.

Payment Promise

A commitment by one party to pay another, often documented in a formal agreement or note.

Common Stock

A type of security that represents ownership in a corporation, entitling holders to a share of the company’s profits through dividends and/or capital appreciation.

Photography Equipment

Tools and devices used in the process of capturing photographs, such as cameras, lenses, lighting, and accessories.