Ask Question
26 May, 14:52

Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given information, it can be concluded that Derek is implementing the process of:

+2
Answers (1)
  1. 26 May, 17:46
    0
    Based on the given information, it can be concluded that Derek is implementing the process of Depreciation.

    Explanation:

    When dealing with assets whether fixed or non-fixed, the cost over its useful life is reduced in a systematic manner until it reaches zero. This is known as depreciation. It represents the value of the said asset that has been used up. The significance of depreciation is to allow the company to make revenue from the assets while the proportion of buying cost is expended during its service.

    Failure to depreciate assets can negatively affect the company's profits. There are different methods used to calculate depreciation and all depends on the following factors: salvage value, the asset cost price, and useful life.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers