If technology changes rapidly, a firm should
A) expense plant asset immediately because of the uncertainty of future benefits.
B) depreciate plant assets over long periods of time.
C) consider an accelerated rate of depreciation.
D) use the straight-line method of depreciation as it is the easiest.

Question

Quizplus · Accepted Answer

Considering an accelerated rate of depreciation would help the firm to record a higher amount of depreciation expense in the earlier years of the asset's useful life, reflecting the rapid technology changes. This would help to better match the cost of the asset with the benefits received.

If Technology Changes Rapidly, a Firm Should