Author : Saroj kumar singh
Keyword : Engineering economics
Subject : Management
Article Type : Original article (research)
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Abstract : The objective of this research is to study the analysis of depreciation as a challenging factor in engineering economics. Depreciation is the decrease in the value of physical properties with the passage of time and use. Most assets are worthless as they age. Production equipment gradually becomes less valuable through wear and tear. This lessening in value is recognized in accounting practices as an operating expense. Instead of charging the full purchase price of a new asset as a one-time expense, the outlay is spread over the life of the asset in the accounting records. Annual depreciation deductions are intended to match the yearly fraction of value used by an asset in the production of income over the asset's actual economic life.
Article by : Dr Saroj Kumar Singh
Article add date : 2020-12-13
How to cite : Saroj kumar singh. (2020-December-13). An analysis of depreciation in engineering economics. retrieved from https://www.openacessjournal.com/abstract/472