Which Statement Concerning the Diminishing-Balance Method of Depreciation Is True

question 32

Multiple Choice

Which statement concerning the diminishing-balance method of depreciation is true?

• A) It charges the same amount of depreciation each period.
• B) It applies a declining percentage factor to the asset's original cost.
• C) It is also known as the units-of-production method.
• D) It is an appropriate method when proportionately more of the asset's benefits are consumed in the early years of its life.

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Definitions:

Electronic Exchanges

Digital platforms that facilitate the trading of financial instruments, commodities, or other items between parties.

Third Party

An entity involved in a transaction or agreement that is separate from the two main parties, often providing additional services or products.

Direct Materials

Raw materials that are directly incorporated into a final product during the manufacturing process.

Manufacturing Process

The method or series of operations involved in the design, fabrication, and assembly of a product or range of products.