Straightline depreciation is a typical example of a variable

Straight-line depreciation is a typical example of a:

variable cost.

step-variable cost.

fixed cost.

mixed cost.

curvilinear cost.

Solution

Answer: Straight-line depreciation is a typical example of a \"Fixed cost\"

Straight line depreciation method- This is a fixed rate depreciation method. In this method a fixed depreciation is deducted from the fixed asset throughout its life. This is very easy method to calculate depreciation and is recommended.

Depreciation (Annual) = (Cost of Asset - Residual Value) / Useful life

or

Depreciation (Annual) = (Cost of Asset - Residual Value) * Depreciation rate (%)