The Balance in the Accumulated Depreciation - Machine Account at the End

question 102

Multiple Choice

The balance in the Accumulated Depreciation - Machine account at the end of the year is $10,000. The book value of the machine is $30,000. The cost of the machine was:

• A) $10,000.
• B) $20,000.
• C) $30,000.
• D) $40,000.

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Definitions:

Short Run

A period in economics during which some factors of production are fixed, making it impossible for a business to change major production facilities.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Output

The cumulative output of goods and services from a company or an economic system.

Average Total Cost

The total cost of production divided by the total number of units produced, representing the per unit cost of production.