Depreciation is best described as a method of

a$.$ Asset valuation

b$.$ Current value allocation

c$.$ Cost allocation

d$.$ Useful life determination

All of the following factors are considered in determining the useful life of an asset, except

a$.$ Expected usage of the asset

b$.$ Expected physical wear and tear

c$.$ Technical obsolescence

d$.$ Residual value

Technical or commercial obsolescence arises from

a$.$ Expected usage of the asset

b$.$ Expected physical wear and tear

c$.$ Change or improvement in production or change in the market demand for the product output of the asset

d$.$ Expiry date of related lease of the asset

The production method of depreciation results in

a$.$ Constant charge over the useful life of the asset.

b$.$ Decreasing charge over the useful life of the asset.

c$.$ Increasing charge over the useful life of the asset.

d$.$ Variable charge based on the expected use or output of the asset.

What factor must be present under the production method of depreciation?

a$.$ Total units to be produced can be estimated

b$.$ Production is constant over the life of the asset

c$.$ Repair costs increase with use

d$.$ Obsolescence is expected