When Selecting a Method of Cost Apportionment an Accountant Should

question 62

Multiple Choice

When selecting a method of cost apportionment an accountant should choose:

• A) The method that best reflects how the asset is used, taking into account its total physical life.
• B) The method that produces the best profit for the firm.
• C) The method stipulated by the taxation department for submitting tax returns.
• D) The method that shows the highest depreciation in early years.
• E) The method that best reflects the economic use of the asset.

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Definitions:

Inequality

A mathematical statement that indicates that two expressions are not equal, using symbols like <, >, ≤, or ≥.

Graphing Calculator

An electronic device capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.

Inequality

A mathematical statement that indicates the relationship of less than (<), greater than (>), less than or equal to (≤), or greater than or equal to (≥) between two expressions.

Critical Numbers

Values in the domain of a function where its derivative is zero or undefined, often marking potential maxima, minima, or inflection points.