Based on This Screen Plot, How Many Factors Should Be

question 21

Multiple Choice

Based on this screen plot, how many factors should be extracted?

• A) 2.
• B) 3.
• C) 4.
• D) 5.

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Definitions:

Salvage Value

The approximated value of an asset at the close of its functional life.

Useful Life

The estimated duration of time that an asset is expected to be operational and economically viable.

Units-Of-Activity

A depreciation method where the expense is based on the actual usage or activity of the asset rather than the passage of time.

Production Based

A method or approach that focuses on enhancing the efficiency and output of the manufacturing process, often measured against set production targets.