Under What Conditions Will the Service Hours and Productive Output

question 103

Multiple Choice

Under what conditions will the service hours and productive output methods of amortization result in the same amortization expense for a particular year?

• A) When the total estimated service hours and production in units are the same.
• B) When the ratio of actual service hours to productive output for the year is the same as the ratio of the estimates used in their respective amortization rates.
• C) When salvage value is zero.
• D) The two methods cannot produce the same amortization expense amount for any given year.

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Definitions:

Female Poverty Rate

The percentage of females living below the poverty line in a given region.

Male Poverty Rate

The proportion of the male population living below the poverty line, measured by the income level considered necessary for basic living standards in a given country or area.

Disparity

The existence of inequalities or differences between groups, regions, or countries, often in terms of economic, social, or health outcomes.

Transitory Income

Income that is temporary or not expected to continue at the same level in future periods, such as one-time bonuses or inheritances.