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Which principle best describes the conceptual rationale for the method of matching depreciation expense with revenues?
Wiki User
∙ 15y ago
Systematic and rational allocation
Wiki User
∙ 15y ago
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What is Reducing balance method of depreciation?
This is an accelerated method of depreciation in which the depreciation is computed by applying a fixed rate to the book value of the fixed asset. This method results in a higher depreciation charge in the early life of the asset compared to later years. The rationale for using this method is that many kinds of plant assets are most efficient when new, so they provide better service in the early years of its useful life. It is therefore consistent with the matching rule to allocate more depreciation to the early years compared to later years if the benefits to be received in the early years are higher. E.g. Computers are more useful in the early years compared to later years, since they are easily obsolete by technological advances. Hence, it has diminishing value as the years goes by.
What is the rationale for interperiod income tax allocation?
nonne
What is the rationale for Push-Down Accounting?
it is a meas whereby not everyone can use the method
What is rationale of computerised information system?
Computer information systems are fast and effective. They can handle large amounts of data and help the business run smoother.
What is the rationale for recognizing costs as expenses at the time of product sale?
Matching Cost against Revenue principles stipulate that a revenue generated must have an associated cost to it. As & when a revenue is recognized, so is the cost.
How do you use rationale in a sentence?
the rationale of being late to class is that you get sent to the principle office
What is a conceptual rationale?
A conceptual rationale is the underlying logic or reasoning behind a particular concept or idea. It explains why the concept was developed, how it is structured, and what problem or question it aims to address. It provides a theoretical basis for understanding and justifying the concept's existence or importance.
Where do you put the theoretical and conceptual framework in a thesis?
The theoretical and conceptual framework is typically included in the introduction or literature review section of a thesis. It helps to provide a rationale for the study by presenting relevant theories and concepts that guide the research and inform the hypotheses or research questions.
What is a written rationale for graphic design?
A written rationale is a description of your thought process behind your design. Good design is all about communication, not about just making things look pretty. For every decision in graphic design, there needs to be logic behind that decision. If you do good conceptual work, then a written rationale should be very very easy. Many students, however, do not do good conceptual work. Their work often tends to be shallow and surface-level, so many students see written rationales as torture.
What is a synonym for principle?
A principle can be a precept, rationale, or rule.(The plural principles has a more specific connotation, that being the rules or precepts by which someone lives; as in having good ones.)
What is business rationale?
Business + Rationale = Business Rationale.
What is a theoretical frame work in a research paper?
The answer is as follows; The rationale for incorporating the review of the literature in the research is that when you substantiate what you say, you usually substantiate it through the literature you have read. Therefore, you must document your source for your rationale and your theoretical/conceptual framework.
What rationale for criminal punishment is the only one that specifically addresses what has happened in the past and what are its two forms?
Retribution is the rationale for criminal punishment that specifically addresses what has happened in the past. The two forms of retribution are lex talionis, or "an eye for an eye," and the principle of proportionality, which relates the punishment to the severity of the crime committed.
What is rationale of chlamydia trachomatis?
Chlamydia is a bacteria; it has no rationale.
What are the rationale and evolution of supplier development?
the rationale for supplier development
What is the rationale for comparison in administration?
iWhat is the rationale for comparison in administration?
What is Reducing balance method of depreciation?
This is an accelerated method of depreciation in which the depreciation is computed by applying a fixed rate to the book value of the fixed asset. This method results in a higher depreciation charge in the early life of the asset compared to later years. The rationale for using this method is that many kinds of plant assets are most efficient when new, so they provide better service in the early years of its useful life. It is therefore consistent with the matching rule to allocate more depreciation to the early years compared to later years if the benefits to be received in the early years are higher. E.g. Computers are more useful in the early years compared to later years, since they are easily obsolete by technological advances. Hence, it has diminishing value as the years goes by.
