Saturday, October 27, 2007

Project Selection Methods Key Terms - Depreciation

For Depreciation, it means that large assets (eg equipment) purchased by the company lose value over a period of time. In accounting terms, there are:

  • Straight Line Depreciation
    The same amount of depreciation is taken each year.

  • Accelerate Depreciation
    Depreciates faster than straight-line (eg Double declining Balance).

2 comments:

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  2. Hi there,

    You laid the best two ways of project selection method of "Depriciation".Thanks for this.Keep posting

    ReplyDelete