The statement is false. Explanation: The work breakdown structure is intended to encompass all aspects that must be identified, estimated, scheduled, and budgeted. It comprises tasks designated for the project team to achieve objectives and deliverables. This tool visually represents and monitors the process of project deliverable creation alongside all related components, typically involving three levels of detail.
Answer: The average annual arithmetic return is 3.75%.
Explanation:
Year 1 = 10%
Year 2 = 15%
Year 3 = 15%
Year 4 = -25%
Total return = 15%
The arithmetic average annual return is calculated as (Year 1 return + Year 2 return + Year 3 return + Year 4 return) / 4 = 15% / 4 = 3.75%.
Depreciation refers to the reduction in an asset's value over time due to wear and tear. Calculating depreciation using the straight-line method results in $38,960 written off annually. This yields a depreciation rate of 16.34% per year. In comparison, using the double declining method results in a depreciation rate of 32.68% annually, with the first year's depreciation amount being $77,909.
Option (B) is the right choice. Explanation: Calculating the depreciable basis involves subtracting residual value from cost, which here results in $190,000 - $10,000, giving us $180,000. The usage is identified as 75,000 bolts. The first-year figures indicate the book value starts at $190,000, while 15,000 bolts were created, translating the depreciation expense into 15,000 multiplied by $2.40, equal to $36,000. Subsequently, the ending book value becomes $190,000 minus $36,000, resulting in $154,000. For Year 2, using 19,000 units leads to a depreciation expense of $45,600. The concluding book value for Year 2 becomes $108,400, while accumulated depreciation for both years culminates at $81,600.
