A.List the Four Different Measures of Capacity

question 6

Essay

a.List the four different measures of capacity.
b.Which measure of capacity is best for setting prices? Why?
c.Which measure of capacity is best for evaluating the performance of the marketing manager for the current year? Why?

---

Definitions:

Carrying Value

The amount an asset is valued at on a balance sheet, subtracting depreciation and amortization.

Value Recovers

The process by which the market value of an asset increases after a period of decline.

Double Declining Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in higher depreciation expenses in the early years of an asset's life.

Depreciation Rate

The rate at which an asset's value is reduced over time for accounting and tax purposes.