When a Company Discards Machinery That Is Fully Depreciated, This

question 134

Multiple Choice

When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry

• A) debit Accumulated Depreciation; credit Machinery
• B) debit Machinery; credit Accumulated Depreciation
• C) debit Cash; credit Accumulated Depreciation
• D) debit Depreciation Expense; credit Accumulated Depreciation

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service, which can inform decisions on how much to produce.

Producing Purse

The process involved in creating and manufacturing handbags.

Long-Run Average Total Cost

A curve that reflects the lowest cost at which a firm can produce any given level of output in the long term, when all inputs are variable.

Short-Run Average Cost Curves

Graphs that show how the average cost of production changes as the level of output is varied in the short term.