Which of the Following Is True of Depreciation Cost

question 106

Multiple Choice

Which of the following is true of depreciation cost?

• A) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is a past cost.
• B) Depreciation cost on equipment is relevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost.
• C) Depreciation cost on equipment is irrelevant in decision making because there is no cash transaction.
• D) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost.

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Definitions:

Tricyclic Antidepressants

A class of medications used to treat depression that works by altering the balance of certain chemicals in the brain.

Norepinephrine

A neurotransmitter and hormone that plays a key role in the body's fight or flight response and affects mood, attention, and arousal.

Atypical Antipsychotic

A class of medication used to treat psychiatric conditions, which generally has fewer side effects than older antipsychotic drugs.

Classical Antipsychotics

A group of medications that are traditionally used to treat symptoms of psychosis such as hallucinations and delusions.