Which of the Following Depreciation Methods Always Allocates a Higher

question 201

Multiple Choice

Which of the following depreciation methods always allocates a higher amount of depreciation in earlier years than in later years?

• A) the units-of-production method
• B) the straight-line method
• C) the double-declining-balance method
• D) the first-in, first-out method

---

Definitions:

Project Alternatives

Project alternatives are different ways to achieve the objectives of a project, considered during the planning phase to select the most efficient method.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which constitutes the firm's financing of its operations and growth.

Payback Period

An alternative metric to calculate the duration required for an investment to recoup its initial costs, measuring the risk and efficiency of the investment.

Initial Cost

The initial expenditure required to acquire an asset or to start a project, including purchase price and any associated set-up fees.