Which of the Following Depreciation Methods Allocate a Varying Amount

question 71

Multiple Choice

Which of the following depreciation methods allocate a varying amount of depreciation to expense each year based on an asset's usage?

• A) the straight-line method
• B) the annuity method
• C) the units-of-production method
• D) the double-declining-balance method

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Definitions:

Tax Rate

The percentage of income or value of goods that is collected by the government as tax.

Elastic Demand

Product or resource demand whose price elasticity of demand is greater than 1, so that any given percentage change in price leads to a larger percentage change in quantity demanded. As a result, quantity demanded is relatively sensitive to (elastic with respect to) price.

Price Elasticity

A measure of how sensitively the quantity demanded of a good or service responds to a change in its price.

Supply

The total amount of a product or service available for purchase at any given time.