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Straight-line depreciation is a typical example of a: variable cost. step-variable cost. fixed cost. mixed cost....

Straight-line depreciation is a typical example of a:

variable cost.

step-variable cost.

fixed cost.

mixed cost.

curvilinear cost.
Business   Accounting   
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Answer #1

Answer: Straight-line depreciation is a typical example of a "Fixed cost"

Straight line depreciation method- This is a fixed rate depreciation method. In this method a fixed depreciation is deducted from the fixed asset throughout its life. This is very easy method to calculate depreciation and is recommended.

Depreciation (Annual) = (Cost of Asset - Residual Value) / Useful life

or

Depreciation (Annual) = (Cost of Asset - Residual Value) * Depreciation rate (%)

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