A Company Uses the Units-Of-Output Method of Computing Depreciation on Its

question 16

Short Answer

A company uses the units-of-output method of computing depreciation on its fleet of cars. A car that costs $26,000 is expected to have a useful life of 75,000 miles and an expected salvage value of $2,000 at the end of its useful life. The rate for each mile is ___________________.
(26000 - 2000)/75000

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Definitions:

Consumption

Consumption is the act of using goods and services by households or individuals.

MPS

Marginal Propensity to Save, expressing the portion of additional income that a household saves rather than spends.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for. It is a key indicator of economic health and consumer spending.

Consumption

The consumption of products and services by families, an essential element in measuring a nation's Gross Domestic Product (GDP).