Which of the Following Depreciation Methods Allocates a Fixed Amount

question 46

Multiple Choice

Which of the following depreciation methods allocates a fixed amount of depreciation to miles driven,hours used,or some other measure of the asset's utilization?

• A) Straight-line
• B) Declining-balance
• C) Units-of-production
• D) Double-declining-balance

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Definitions:

Benefit

The advantage or profit gained from something, often used in the context of weighing costs against benefits in decision-making processes.

Freely Functioning Market

A market where goods and services are traded without any restrictions or interventions from governments.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.

Efficient

The optimal allocation of resources in a manner that maximizes output or outcomes without wasting any resources.