When do the depreciation expenses lose some of their value? Why?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 5DQ: What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.
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When do the depreciation expenses lose some of their value? Why?

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Step 1

Depreciation is a process in the decrease in the value of an asset. A reduction in the value over a period of time.

Step 2

Depreciation is treated as an expense.Depreciation loses its value under the Reducing Balance Method. In Reducing Balance Method the depreciation is in a different amount until the assets balance diminishes.

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