Which Fund Would Most Likely Report Depreciation Expense

question 32

Multiple Choice

Which fund would most likely report depreciation expense?

• A)A special revenue fund
• B)An enterprise fund
• C)A capital projects fund
• D)A debt service fund

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Definitions:

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases, leading to a reduction in average cost per unit.

Specialization

The focus of a business or individual on a limited scope of products or skills, allowing for increased efficiency and expertise.

Total Cost Curve

A graphical representation showing the total cost associated with producing varying quantities of output, illustrating economies or diseconomies of scale.

Short Run

A time frame in economics during which at least one factor of production is fixed, limiting the ability of the economy or a firm to adjust to changes.