A Company Purchased a Computer on July 1,2012

question 5

Multiple Choice

A company purchased a computer on July 1,2012.The computer has an estimated useful life of 5 years and will have no salvage value.It was purchased for $10,000.It is estimated that the computer can be used for 5,000 hours.The computer was used for 450 hours during 2012.If the goal is to record higher depreciation expense in the earlier years,which method should be used?

• A) Units-of-production
• B) Straight-line
• C) Double-declining-balance
• D) First-In, First-Out

---

Definitions:

Increasing Inventory

The process of adding more stock to a company's current inventory levels, often in anticipation of higher demand or to prevent stockouts.

Variability

The extent to which data points in a dataset differ from each other and from the mean of the dataset, reflecting the dispersion or spread of the data.

Waste

Materials or substances that are no longer useful for production and are discarded.

Adds Value

The process of enhancing a product or service before offering it to customers, thereby increasing its value and appeal.