The Depreciable Cost Used in Calculating Depreciation Expense Is

question 77

Multiple Choice

The depreciable cost used in calculating depreciation expense is:

• A)Its service life.
• B)The amount allowable under tax depreciation methods.
• C)The difference between its replacement value and cost.
• D)The asset's cost minus its estimated residual value.

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Definitions:

Step-down Method

A cost allocation method used in accounting to distribute overhead costs to various departments or products.

Machine Hours

The total number of hours that machinery is operational during a certain period.

Number Of Employees

A count of all individuals working for a company, including both full-time and part-time staff.

Step-down Method

A cost allocation method used in managerial accounting to allocate overhead costs from service departments to producing departments.