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It ignores variations in the rate of asset use.

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13y ago

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What impact will different depreciation methods have on a companys bottom line?

different deprecition method impact differently on the company's profit. The straightline method of depreciation when used impact differently on the profit and loss than the reducing balance method. How do the two methods differ. different deprecition method impact differently on the company's profit. The straightline method of depreciation when used impact differently on the profit and loss than the reducing balance method. How do the two methods differ.


Accelerated depreciation method?

Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.


Diminishing balance method of deprecation in the financial statements be more conservative or less conservative than the current practice of using the straight-line method?

The diminishing balance method of depreciation is generally considered less conservative than the straight-line method as it results in higher depreciation expenses in the earlier years of an asset's life. This reflects a more aggressive approach in recognizing depreciation compared to the straight-line method, which spreads depreciation evenly over the useful life of the asset.


Straight line method of depreciation?

Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.


Depreciation straight line method?

Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.


When is the reducing balance method more suitable than the straightline method?

in what circumstances is the reducing balance method more appropriate than the straight line method?


What is MT and MSL in accounting depreciation method?

MT and MSL are two depreciation methods used in accounting. They are based on the linear method of depreciation.


What is the fastest depreciation method?

straight line method


How is the straight line depreciation method different from declining balance method?

Under straight line depreciation, fixed amount of depreciation is charged to every year while in declining balance method depreciation percentage remains same but depreciation is charged on remaining balance of asset due to which the amount of depreciation is different in every year.


What are the basic method of depreciation?

http://en.wikipedia.org/wiki/Depreciation#Straight-line_depreciation


What is the formula for a straight line depreciation method?

The formula for a straight line depreciation method is the Cost minus the Salvage Value over the Life in Number of Periods which will equal Depreciation.


What depreciation method does target use?

the straight line method