Which of the Following Accounting Methods Is Generally Used to Compute

question 173

Multiple Choice

Which of the following accounting methods is generally used to compute amortization expense?

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

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Definitions:

Marginal Product Data

Information that shows how the addition of a single unit of a factor of production, such as labor or capital, affects total output.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which each supplier's offerings are perfectly substitutable by the consumers.

Profit-Maximizing Rule

A principle stating that firms achieve maximum profit when they produce goods or services to the point where marginal cost equals marginal revenue.

Cost-Minimization Rule

A principle in economics that suggests a firm should produce any given output at the lowest possible cost.