The Calculation for Annual Depreciation Using the Units-Of-Production Method Is

question 34

Multiple Choice

The calculation for annual depreciation using the units-of-production method is

• A) (initial cost/estimated output) * the actual yearly output
• B) (depreciable cost / yearly output) * estimated output
• C) depreciable cost / yearly output
• D) (depreciable cost / estimated output) * the actual yearly output

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Definitions:

Fair-Return

A principle whereby regulated entities are allowed to set prices that cover their costs and provide a reasonable profit.

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers based on various factors.

Elastic

In economics, it describes a situation where the demand or supply for a good changes significantly in response to price changes.

Nondiscriminating

Policies or practices that do not selectively favor or prejudice any particular group or individual.