Depreciation Methods

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Samuel S


Date added:

March 3, 2016








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The life of the asset is considered by the output and the input. There is however a limitation to this method and does not work when we are talking about depreciation as a function of time and not an activity. The Straight-line Method considers depreciation a function of time rather than a function of usage...
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This method is most widely used due to the facts that it is most appropriate and very simple. Although, some companies feel that since the economic usefulness as well as the repair/maintenance expense are the same each year, as well as the rate of return analysis being distorted, that this is not the best method to utilize...
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