Why is depreciation accounting imperfect for analysis purpose?
2007-01-18 06:17:17 · 3 answers · asked by Munch_101 1 in Business & Finance ➔ Other - Business & Finance
As someone mentioned earlier, you don't necessarily know how long the equipment will last. Also companies usually use straight-line because it is easier but the asset doesn't always depreciate equally per year it is being used. Some years it may be used more than in another year for example a company car. One year it may be driven more than another year. Also some assets may depreciate faster over the first few years of its life but the company still chooses to use straight-line.
2007-01-18 08:37:43 · answer #1 · answered by potatochip 7 · 0⤊ 0⤋
Call it the swag method. Stategic wild A-S guess. No one knows for sure the useful life of machinery etc>
2007-01-18 14:21:29 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
ooga booga hoga!
2007-01-18 14:19:56 · answer #3 · answered by ya ok....sure 2 · 0⤊ 0⤋