Why is depreciation expense irrelevant to most managerial decisions, even when it is a future cost?
Depreciation expense is simply the systematic write-off of a sunk cost (the cost of a long-lived asset). Depreciation expense is therefore always irrelevant unless it pertains to an asset that is not yet acquired.
You might also like to view...
Of the following, the most reliable type of evidence typically is:
A. Inspection of records and documents. B. Confirmation. C. Observation. D. Reperformance.
[APPENDIX] When a company has a credit balance in its Deferred Tax account, this amount would appear as a(n)
a. contra asset on the balance sheet. b. stockholders' equity account on the balance sheet. c. expense account on the income statement. d. liability account on the balance sheet.
Answer the following statements true (T) or false (F)
1. Interviews with people who currently hold a job is part of a job analysis for that position. 2. A job description describes the minimum qualifications a person must have to perform the job successfully. 3. The process of writing job analyses, descriptions, and specifications often helps you to hire people who are overqualified. 4. A human resource inventory organizes information for assessing which of your current employees are promotable and what kind of training your organization might have to do.
Accounting standards codification TM addresses U.S. GAAP for nongovernmental entities
Indicate whether the statement is true or false