Mark the Correct Answer. in Calculating Depreciation

question 91

Multiple Choice

Mark the correct answer. In calculating depreciation:

• A)Straight-line depreciation is higher than double declining balance depreciation in the early years.
• B)Straight-line depreciation is higher than double declining balance depreciation in the later years.
• C)Double declining balance is a method of straight-line depreciation.
• D)MACRS depreciation requires that salvage value be taken into account.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced.

Long-Run Equilibrium

A state in a market where supply equals demand, all firms are earning normal profits, and no firm has an incentive to change its output or price.

Profit-Maximizing Level

The profit-maximizing level is the point at which a firm achieves the highest possible profit, determined by analyzing costs and revenue to find the most efficient production volume.

Demand Schedule

A graphical representation that illustrates how much of an item or service consumers are ready and financially able to acquire at assorted price points.