what are the different depreciation methods used by the companies?
1 Answer(s)
khare_88p
1) Straight Line Depreciation
Charging an equal amount of depreciation in each accounting period.
2) Units of Production
It assigns an equal amount of expense to each unit produced.
3) Double Declining Balance
It calculates a higher depreciation charge in the first year of an asset's life and gradually decreases depreciation expense in subsequent years.
The last one is used commonly as it gives the actual value of product and amount of depreciation.
Jun 05 2014 12:53 PM
Charging an equal amount of depreciation in each accounting period.
2) Units of Production
It assigns an equal amount of expense to each unit produced.
3) Double Declining Balance
It calculates a higher depreciation charge in the first year of an asset's life and gradually decreases depreciation expense in subsequent years.
The last one is used commonly as it gives the actual value of product and amount of depreciation.