If a Company Purchases a Machine for £60,000 and Charges

question 2

Multiple Choice

If a company purchases a machine for £60,000 and charges depreciation at 10% on a diminishing balance basis,what is the depreciation charge in the forth year?

• A) £5,042
• B) £4,374
• C) £6,000
• D) £4,860

Recognize the theoretical and practical applications of behavior modification within family settings.

Understand and apply basic arithmetic operations (addition, subtraction, multiplication, division) with integers.

Use and simplify fractions and decimals in arithmetic operations.

Perform arithmetic operations with fractions (addition, subtraction, multiplication, division) and simplify the results.

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Definitions:

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including the value of all assets employed in a business.

Production Function

A formula that specifies the output generated by a firm from varying combinations of factor inputs.

Marginal Cost

The supplementary expense incurred by fabricating one more unit of a product or service.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.