Fundamental Managerial Accounting Concepts
Fundamental Managerial Accounting Concepts
7th Edition
ISBN: 9780078025655
Author: Thomas P Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip R Olds
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 5ATC

a.

To determine

The manner in which longer estimated life for depreciable assets potentially affects its earnings

b.

To determine

Whether using longer estimated life for a depreciable asset is more likely to affect company’s variable cost or fixed cost.

c.

To determine

The cause for overestimating the useful lives of company’s depreciable asset in case of non-united continental

d.

To determine

The cause for overestimating the useful lives of company’s depreciable asset in case of violation of ethical standards

e.

To determine

Explain the manner in which provision of the Sarbanes-Oxley act would prevent the executives of the company from overestimating the useful lives of company’s depreciable asset.

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Fundamental Managerial Accounting Concepts

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