Depreciation Is a Unique Expense Because It

question 39

Multiple Choice

Depreciation is a unique expense because it

• A) does not require a cash outlay.
• B) does not affect income taxes.
• C) is the same amount every accounting period.
• D) has to be calculated.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust all inputs.

Patents

Legal documents that grant an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Monopoly Power

The control held by a single entity over the entire market for a product or service, allowing it to significantly influence or set prices.

Lawsuits

Legal actions taken by one party against another for the redress of grievances in a court of law.