Depreciation

question 52

Multiple Choice

Depreciation

• A)is calculated by the department that uses the fixed asset
• B)allocates the cost of the asset over its useful life
• C)is recorded weekly
• D)results in book value approximating fair market value

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Definitions:

Variable Cost

Expenses that change in direct proportion to the amount of business or production activity.

Variable Cost Per Unit

The cost that varies with the level of output or activities, calculated on a per-unit basis.

Units Sold

The total quantity of products sold by a business during a specific period.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period in which they occur, such as selling, general, and administrative expenses.