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Essay

Discuss the importance of depreciation.

Essay specific features

 

Issue:

Business

 

Written by:

Jonathan C

 

Date added:

May 30, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 800

 

Was viewed:

9602 times

 

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Essay content:

Depreciation takes into account the decrease in the service potential of capital assets invested in a business venture, resulting from such causes as physical wear and tear in ordinary use, deterioration by natural elements or obsolescence caused by technological changes. Basically depreciation is a loss in value or a diminishment in market price of a good always taking the time factor into account...
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Basically depreciation is a loss in value or a diminishment in market price of a good always taking the time factor into account. Depreciation is a rate of change in value in an asset fixed or current compared to the present value of that asset. For example if a company purchases machinery for the production of a certain product the management must take under consideration the equipment's life cycle, meaning that this machinery has a certain period of time in which it can contribute to the production before it becomes useless...
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