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:

Delivery Cycle Time

The total time taken from receiving a customer order to delivering the finished product to the customer, encompassing all stages of the order processing and production process.

Turnover

The rate at which inventory or assets of a business are replaced or sales are made over a specific period.

Margin

Generally refers to the difference between the selling price of a good or service and its cost, expressed as a percentage of the selling price.

Residual Income

The income that remains after deducting all required costs of capital from operating income, used as a measure of profitability.