Answered: How does replacement cost depreciation…

How does replacement cost depreciation differ from historical cost methods? a) Uses longer life estimates b) Based on current asset values c) Requires straight-line method d) Ignores salvage value

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 5DQ: What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.

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How does replacement cost depreciation differ from
historical cost methods?
a) Uses longer life estimates
b) Based on current asset values
c) Requires straight-line method
d) Ignores salvage value

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how does replacement cost depreciation differ from historical cost methods?
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