Four widely used methods of allocating the cost of equipment over its useful life are

Question

Quizplus · Accepted Answer

The four methods listed in B are the commonly used methods of allocating the cost of equipment over its useful life. Depreciation, allocation, amortization, and depletion (A) are specific methods used for different types of assets such as property, patents, and natural resources. FIFO, LIFO, weighted average, and specific identification (C) are methods used for inventory valuation. Therefore, B is the correct choice for this question.

Four Widely Used Methods of Allocating the Cost of Equipment