An advantage of depreciation is being able to have a tax deduction. A disadvantage is not being able to calculate the rate of depreciation for each year.
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Advantages: Easy to use Matches Cost to revenues (Matching Concept) Disadvantages: Depreciation can not be charged when the Asset is not in use.
One of the advantages of fixed assets are that over the period of the fixed asset, the total burden of depreciation and repair costs are disproportional over the effective life of the asset. One of the disadvantages is that the depreciation is not a suitable method for assets like plants and machinery as depreciation is constant while the repairs on such assets will be heavier in later years.
There are advantages and disadvantages when purchasing a time share for your vacation destination. The main disadvantages are depreciation, and the inability to use your timeshare due to scheduling conflicts.
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