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:

Total Output

The total value of all goods and services produced in an economy over a specific time period.

Average Total Cost

The total cost of production divided by the quantity produced, incorporating both fixed and variable costs.

Average Fixed Cost

The constant costs of producing (which remain the same regardless of output volume) shared among the produced output units.

Average Variable Cost

Variable costs, which fluctuate based on production volume, divided by the total number of units produced.