Depreciation is called a notional cost because it cannot be measured in real terms.
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
Debit depreciation accountCredit accumulated depreciation
When a small amount of invested monies control or can potentially destroy large amount of assets. It is considered notional net sales.
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
Depreciation is called a notional cost because it cannot be measured in real terms.
Here is a sentence with the word notional, "Most of the ideas the government has are notional and not practical." This means that they only exist in theory.
Notional amount is the amount which is calculated on the underlying asset for ex: s&p index offering contract @ 250 units trading with price of 1000, than its actual notional value is 250*1000 = 250,000. which is notional amount
Notional Profit = Value of work certified-(cost of work to date-cost of work uncertified)
Notional promotion does not involve monetary benefit.
Kilt
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
Direct methodology varies greatly from functional- Notional aproach,What are those differences?
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses that’s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well.
yes, its implied cost.
What is meaning of nosnal