The Statement That Describes the Assumption Underlying the Straight-Line Method

question 55

Multiple Choice

The statement that describes the assumption underlying the straight-line method of depreciation is which of the following?

• A) The asset makes the same contribution to income each year.
• B) The asset's contribution to income relates mainly to obsolescence.
• C) The asset makes a higher contribution to income in the earlier years of its life.
• D) The asset's contribution to income is variable.

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Definitions:

Process Manufacturing Systems

Process manufacturing systems refer to the methods and equipment used in industries where products are produced in bulk by chemical, biological, or physical processes.