Under MACRS, the Same Method of Depreciation (Accelerated or Straight-Line)

question 99

True/False

Under MACRS, the same method of depreciation (accelerated or straight-line) must be used for all property in a given class placed in service during a tax year.

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Definitions:

Facility-sustaining Activities

Costs and activities associated with maintaining a manufacturing or production facility at an operational status, independent of the actual levels of production.

Batch-level Activities

Operations and tasks performed for a group of units produced as a single batch, costing is aggregated at the batch level.

ABC

Activity-Based Costing, a method of allocating costs to products or services based on the resources they consume.

Unused Capacity

Refers to the resources or capabilities within a business that are not currently being used to their full potential, which can lead to inefficiencies or lost income.