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:

Give Reasons

The act of providing logical or rational explanations for actions, decisions, or beliefs.

Holistic Critical Thinking

An approach to critical thinking that considers all aspects, factors, and perspectives of an issue comprehensively.

Scoring Rubric

A set of criteria used for assessing or grading performances, products, or responses.

Critical Thinking

Conducting an objective scrutiny and appraisal of an issue with the goal of forming an evaluation.