What Is the Major Purpose of Depreciation

question 41

Multiple Choice

What is the major purpose of depreciation?

• A)to provide for the replacement of the asset.
• B)to spread the cost of the asset over its useful life, so that the cost of using it up is matched against income earned.
• C)to adjust the asset to its expected market value.
• D)none of the above.

Understand the concept of the bystander effect and factors affecting it.

Comprehend the phenomenon of diffusion of responsibility within groups.

Recognize limitations and ethical considerations in psychological research on conformity and obedience.

Define what constitutes a group in social psychology.

---

Definitions:

Holding Costs

Expenses associated with storing inventory over a certain period, including warehousing, insurance, depreciation, and opportunity costs, among others.

Level Scheduling

is a production strategy aimed at producing goods at a consistent rate, balancing production output with customer demand to minimize inventory costs and optimize operational efficiency.

Aggregate Planning Horizon

The timeframe over which a company plans its overall production levels and inventory positions to meet forecasted demand, typically ranging from 3 to 18 months.

Hiring And Layoffs

Employment practices that involve adding new employees to the workforce or releasing employees from a company, typically due to economic conditions or company restructuring.