1) Activity method of depreciation:

A. Conceptually relates cost in terms of input measures.
B. Suppose that depreciation is a function of the passage of time.
C. Is a variable charge approach.
D. All of these.

2) For income statement purposes, depreciation is the variable expense if depreciation method used is:

A. Straight-line.
B. Declining-balance.
C. Units-of-production.
D. Sum-of-the-years'-digits.

3) Use of double-declining-balance method:

A. Means the book value should not be reduced below salvage value.
B. Yields in a decreasing charge to depreciation expense.
C. Means salvage value is not deducted in computing the depreciation base.
D. All of these.

4) Use of sum-of-the-years'-digits method:

A. Yields in salvage value being ignored.
B. Means the book value should not be reduced below salvage value.
C. Means the denominator is years remaining at the beginning of the year.
D. All of these.