JA) term given to a fall in a company's stock price. B) name given to how accountants calculate the depreciation of the capital. C) opportunity cost of owning and using the firm's capital, measure change in market value. D) fall in value of the firm's capital, calculating using IRS rules.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 2E
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Economic depreciation is the
A) term given to a fall in a company's stock price.
B)
name given to how accountants calculate the depreciation of the company's
capital.
C) opportunity cost of owning and using the firm's capital, measured as the
change in market value.
D) fall in value of the firm's capital, calculating using IRS rules.
E)
decrease in the value of finished goods and services that are held in
inventories prior to being sold.
Transcribed Image Text:Economic depreciation is the A) term given to a fall in a company's stock price. B) name given to how accountants calculate the depreciation of the company's capital. C) opportunity cost of owning and using the firm's capital, measured as the change in market value. D) fall in value of the firm's capital, calculating using IRS rules. E) decrease in the value of finished goods and services that are held in inventories prior to being sold.
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