A Company Purchased a Computer on July 1,2019 for $50,000

question 25

Multiple Choice

A company purchased a computer on July 1,2019 for $50,000.The estimated useful life of the computer was five years,and it has no residual value.Which of the following methods should be used to best match its expense against the revenue it produces?

• A) the units-of-production method
• B) the straight-line method
• C) the double-declining-balance method
• D) the first-in, first-out method

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Definitions:

Plan

A detailed proposal for achieving specific goals or outcomes, often outlining steps, resources, and timelines.

Unlike MRP

refers to practices or strategies that differ from Material Requirements Planning, focusing instead on alternative methodologies for managing production and inventory.

Departments

Distinct divisions within a company or organization designated for specific functions or roles.

Machines

Mechanical or electronic devices that perform various tasks when supplied with input or energy.