Which of the Following Depreciation Methods Allocate a Varying Amount

question 71

Multiple Choice

Which of the following depreciation methods allocate a varying amount of depreciation to expense each year based on an asset's usage?

• A) the straight-line method
• B) the annuity method
• C) the units-of-production method
• D) the double-declining-balance method

---

Definitions:

Expected-Rate-of-Return Curve

A graph depicting the expected returns on investment as a function of the level of risk.

MB = MC Decision Framework

A decision-making principle where optimal allocation of resources is achieved when marginal benefit equals marginal cost.

Marginal Benefit Element

The heightened sense of satisfaction or value realized by a consumer upon acquiring another unit of a good or service.

Expected-Rate-of-Return-Curve

A graphical representation showing the range of possible outcomes for the return on an investment and their associated probabilities.