An asset has a value of $1,000,000. In an attack, it is expected to lose 60 percent of its value. An attack is expected to be successful once every ten years. Countermeasure X will cut the amount lost per incident by two-thirds. Counter measure Y will cut the frequency of successful attack in half. Countermeasure X will cost $30,000 per year, while Countermeasure Y will cost $5,000 per year. Do an analysis of these countermeasures and then give your recommendation for which to select (if any).
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
An asset has a value of $1,000,000. In an attack, it is expected to lose 60 percent of its value. An attack is expected to be successful once every ten years. Countermeasure X will cut the amount lost per incident by two-thirds. Counter measure Y will cut the frequency of successful attack in half. Countermeasure X will cost $30,000 per year, while Countermeasure Y will cost $5,000 per year. Do an analysis of these countermeasures and then give your recommendation for which to select (if any).
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