When the Cost Object Is a Unit Produced, Straight-Line Depreciation

question 41

Multiple Choice

When the cost object is a unit produced, straight-line depreciation on manufacturing equipment would be a: Variable Cost Fixed Cost Direct Cost

• A)No Yes No
• B)Yes No No
• C)Yes No Yes
• D)No Yes Yes

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Definitions:

Return On Assets

A profitability ratio that indicates how efficiently a company uses its assets to produce profit, calculated by dividing net income by total assets.

Net Profit Margin

A financial performance metric that shows the percentage of sales that has turned into profits, calculated by dividing net profit by revenue.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate a company's financial health and growth prospects.