As Much as 75 Percent of the Total Lifetime Cost

question 47

Multiple Choice

As much as 75 percent of the total lifetime cost for an application program is spent on this.

• A) Electricity
• B) Storage
• C) Documentation
• D) Maintenance

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Definitions:

Accelerated Cost Recovery

A method of depreciation used for tax purposes that allows for higher deductions in the early years of an asset's life.

Straight-Line Depreciation

Straight-Line Depreciation is a method where the cost of a tangible asset is reduced evenly over its useful life.

Deferred Tax Income Tax

A tax liability or asset that arises due to temporary differences between the financial reporting and tax bases of assets and liabilities.

Valuation Allowance

An accounting practice used to offset a deferred tax asset on the balance sheet if it is likely that some portion or all of the asset may not be realized.