The diminishing-balance method will yield a higher cost of goods sold.

Name: The diminishing-balance method will yield a higher cost of goods sold.
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Question

Quizplus · Accepted Answer

The diminishing-balance method is a depreciation method, not a method for calculating the cost of goods sold. It affects the value of assets on the balance sheet by accelerating depreciation, not directly influencing the cost of goods sold on the income statement.

The Diminishing-Balance Method Will Yield a Higher Cost of Goods