When the straight-line method is used, annual depreciation is calculated by dividing depreciable cost by the:
Correct answer: B. Estimated useful life of the asset
- A. Current market rent of the property
- B. Estimated useful life of the asset
- C. Original construction area of the asset
- D. Number of occupants using the asset
Explanation
Straight-line depreciation spreads depreciable cost evenly over the estimated useful life. Depreciable cost generally means original cost less estimated salvage value.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
Practise Construction Management and Estimation
80 free Construction Management and Estimation MCQs from Civil Engineering, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Civil Engineering questions like this
Civil Engineering is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Construction Management and Estimation questions
In property valuation, what does salvage value mean?
What does a cost-loaded construction schedule assign to project activities?
Under a time-and-materials construction contract, payment is generally based on:
What is the main purpose of a procurement schedule in a construction project?
In a construction contract, a prime cost sum usually represents an allowance for:
What is the main purpose of recording minutes of a construction site meeting?