When Comparing the Units-Of-Output Method of Depreciation with Straight-Line Depreciation

question 67

Multiple Choice

When comparing the units-of-output method of depreciation with straight-line depreciation:

• A) The depreciation expense in the first year will always be greater under units-of-output method.
• B) The depreciation expense in the first year will always be less under the units-of-output method.
• C) The depreciation expense in the first year will always be the same.
• D) The depreciation expense in the first year may be greater than, equal to, or less under the units-of-output method.

Identify the fundamental problem of economics as the need to make choices due to scarce resources.

Describe the basic categories into which resources are divided.

Comprehend the definition and role of capital in economics.

Describe the role of an entrepreneur in the economy.

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Definitions:

Nonbiological Reservoirs

Natural or artificial environments that do not involve living organisms, which can store various substances or elements.

Biogeochemical Cycles

Natural pathways by which essential elements or compounds move through the biosphere, lithosphere, atmosphere, and hydrosphere.

Carbon

A chemical element with symbol C, capable of forming many compounds including carbon dioxide and organic molecules.

Atmosphere

The layer of gases surrounding a planet or celestial body, gravitationally bound to it, and essential for many life forms.