A Policy Is

question 14

Multiple Choice

A policy is

• A) Procedures that tell units when it would be nice if things were operated a certain way, but it is not a requirement to do so
• B) Guidelines to users and customers on what is appropriate and what is not appropriate to do with information technology resources
• C) A document that records a high-level principle or course of action that has been decided on
• D) A defined set of rules, accepted and adopted by several organizations

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing wear and tear or obsolescence.

Units-of-Production

A method of depreciation that allocates expenses based on the number of units a fixed asset produces, linking the expense directly to the asset's usage.

Asset Costing

The process of determining the original total cost associated with acquiring an asset.

Loss

The amount of money a business loses when its expenses exceed its revenues.