A Method That Charges the Same Amount of Expense Over

question 156

Multiple Choice

A method that charges the same amount of expense over each period of the asset's useful life is called:

• A)Accelerated depreciation.
• B)Declining-balance depreciation.
• C)Straight-line depreciation.
• D)Units-of-production depreciation.
• E)Modified accelerated cost recovery system (MACRS) depreciation.

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Definitions:

Maintenance Cost

Maintenance cost is the total expense incurred in keeping an asset in good working condition, including costs for repairs, replacements, and preventive measures.

Administrative Expense

Overhead or general expenses related to the administration of a business, not directly tied to any specific department or product.

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.

Sales Commission

A fee paid to sales personnel, often calculated as a percentage of the sales they generate.