What Issues Need to Be Addressed to Determine How to Allocate

question 59

Multiple Choice

What issues need to be addressed to determine how to allocate the cost of an asset?

• A) The depreciation method, the probable future benefit and the years to obsolescence.
• B) The depreciable base, its useful life and the method of cost apportionment.
• C) The cost of the asset, its residual value and the method of cost apportionment.
• D) The probable future benefit, the depreciation method and the depreciable base.
• E) None of the given answers.

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Definitions:

Meganational Approach

A strategy by businesses to operate on a global scale, emphasizing uniformity in products and services across countries to exploit economies of scale.

Value Chain

A series of activities that a company performs to create value for its customers, from product design to post-sale service.

Location Economies

The cost advantages gained by a business due to its geographical position, often influencing its competitiveness.

Meganational Strategy

A business strategy that emphasizes operating and competing in multiple countries as one global market.