Which Amortization Method Is Particularly Appropriate Where: (A) Obsolescence Is

question 23

Multiple Choice

Which amortization method is particularly appropriate where: (a) obsolescence is not the primary factor, (b) actual use can be accounted for, and (c) the service life in units of use can be estimated reliably?

• A) Sum-of-the-years'-digits
• B) Double-declining balance
• C) Productive output
• D) Straight-line

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Definitions:

Interplay

The reciprocal influence or interaction between two or more factors, highlighting how they affect each other in various contexts.

Conscious

The part of the mind within our usual awareness.

Pleasure Principle

The driving force of the unconscious that wants whatever brings pleasure.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.