A _____ Is a Dollar Amount Added to the Cost

question 182

Multiple Choice

A _____ is a dollar amount added to the cost of products to get the selling price.

• A) markup
• B) rebate
• C) list price
• D) spiff
• E) deal

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Definitions:

Historical Cost

The original monetary value of an asset or transaction, based on the purchase price or cost at the time of acquisition.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over time.

Double-Declining-Balance Method

A method of accelerated depreciation which computes depreciation expense by doubling the straight-line rate and applying it to the book value of the asset at the beginning of each year.

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decrease in value.