Why are time-based depreciation methods used more frequently than activity-based methods?

Q: Under what conditions is the use of the straight-line depreciation method most appropriate?

A: There are different methods of depreciation and one such method is straight line method of…

Q: What is group depreciation method?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: What factor must be present to use the units-of-production (activity) method of depreciation?

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: What information is found on the depreciation schedule? How can this information be verified?

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Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…

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Q: What is the purpose of depreciation

A: Depreciation is an accounting system for spreading out the expense of a tangible item over the…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Define the term depreciation recapture?

A: Depreciation recapture is the earnings acknowledged by the offer of depreciable capital assets that…

Q: Which depreciation method would best reflect the risk of obsolescence from rapid technological…

A: Depreciation is the reduction in the value of the tangible assets such as building, motor vehicles,…

Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…

A: Introduction: Depreciation refers to two aspects of the same concept: first, the actual decrease in…

Q: Is there any evidence to suggest that the straight-line depreciation approach is more often used

A: The question tells about the straight-line depreciation approach is more often used

Q: Detailed Explanation needed. Advantages and Disadvantages of methods of depreciation ( Straight…

A: The efficiency of the assets will reduce over the period. To record this reduction in the…

Q: can you give me an example of straight line depreciation and explain it

A: The straight-line basis is a depreciation method of estimation of depreciation expense on an asset.…

Q: Please explain double-declining method depreciation. When is this the preferred method to figure…

A: The double-declining balance method is a method to calculate depreciation. Depreciation as per…

Q: Is residual value deductible when using accelerated method of depreciation>

A: The accelerated method of depreciation includes double declining balance method, 150% declining…

Q: Determine periodic depreciation using both time-based and activity-based methods and account for…

A: Depreciation expense:   Depreciation is a method of reducing the capitalized cost of long-lived…

Q: Define accelerated depreciation method

A: Depreciation can be referred as the reduction in the fair value of an asset due to its usage over…

Q: Briefly differentiate between the straight-line depreciation method and accelerated depreciation…

A: Depreciation: The depreciation is the expense which is debited to the income statement in the ratio…

Q: What are some factors that could explain the predominant use of the straight-line depreciation…

A: Straight-line Depreciation:Under the straight-line method of depreciation, the same amount of…

Q: What is depreciation of property, plant and equipment? What are the factors to consider in computing…

A: Depreciation Depreciation is the term which is used for the business to deduct the amount…

Q: Distinguish between three depreciation methods:Straight-Line Method; Production Method; and…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Explain the difference between depreciation, depletion, and amortization.

A: Depreciation - Depreciation is the wear and tear of fixed assets due to use, effluxion of time, and…

Q: How do you figure units-of-production method depreciation?

A: The business entities are required to charge the depreciation expense on their assets so that the…

Q: How do you know the ratesw on straight line depreciation?

A: Solution:- The following way to find depreciation rates on straight line depreciation method as…

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: Which of the following depreciation methods most closely approximates the method used to deplete the…

A: Normally Depletion method of depreciation is used for natural resource. Similar to any other…

Q: Under what circumstances will you consider the reducing balance method as the most appropriate…

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Q: Explain what complications might arise in trying to compare the results of straight-line…

A: Depreciation is defined as a reduction in the value of an asset that occurs over time as the assets…

Q: Explain the depreciation process and benefits of property, plant and equipment?

A: Depreciation on Property, Plant, and Equipment: It is considered as the charge against the profit…

Q: How is the straight-line depreciation calculated?

A: Definition: Straight-line depreciation method: The depreciation method which assumes that the…

Q: Explain the suitability of the depreciation method.

A: SOLUTION- Depreciation is an accounting method of allocating the cost of a tangible or physical…

Q: Explain Activity-Based Depreciation Methods.

A: Depreciation per unit under Activity-Based Depreciation Method = (Cost of asset - Expected residual…

Q: Understand depreciation concepts and methods of depreciation.

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Q: under what conditions is the use of the units-of-activity depreciation methos most appropriate?

A: Depreciation is a non-cash outlay that is to be reported in the books due to regular usage of the…

Q: What is meant by depreciation for the cost approach?

A: The cost of the property should not be more than the cost of acquiring and building the property.…

Q: Why was the salvage value used in calculating the depreciation expense?

A: This method also called diminishing balance method or declining balance method where the…

Q: Give reasons why depreciation methods are useful?

A: Depreciation: It is the reduction in the value of an asset due to factors like normal usage and…

Q: Which of the following must be true in order to use the units-of-production method of depreciation?…

A: All fixed assets loses their value over the period of time. Depreciation is recorded in books of…

Q: Why would someone choose a slower alternative depreciation method?

A: ADS stand for Alternative Depreciation System. In this system, amount of depreciation is set as same…

Q: Why are the cost of plant/long term assets recovered through depreciation vs. expensed out during…

A: Answer : The fixed assets are long-run assets. they assist within the production of goods and…

Q: a. Under what conditions is the use of the straightline depreciation method most appropriate?b.…

A: a. Explain the condition under which the straight-line depreciation method is the most appropriate…