Business Studies, asked by ashaglory9605, 1 year ago

Demerits of fixed instalment method

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Answered by Anonymous
1
Fixed installment method does not take into consideration the seasonal fluctuations in the use of fixed assets. Depreciation amount per month will remain the same irrespective of the use of machine.

* Equal amount of Depreciation is charged even though the capacity of the machine declines every year

Hope this helps you
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