MGT101 Depreciation Methods, vubwn MGT101 most important topics.

Q. What is Depreciation?

Ans: Depreciation is a price that will be reduced from assets during the accounting period.

 1)

Straight line method:

Depreciation=amount/useful life;

2)

Reducing method:

Depreciation%=reducing/price*100;

3)

Service hours method:

Depreciation=price-scrap value/Estimated life in hours;

4)

Unit output method:

Depreciation per unit=price/Total Estimate output unit;

5)

Depreciation=total price/life in years;