Question

Depletion method is more suitable for
a) Service industry
b) Mining industry
c) Intangible assets
d) All the above​

Answer 1

Depletion method of depreciation is most suitable for coal mine. This method is specially used for those assets which deplete with use. The cost of the asset is divided by total workable deposits. ... The quantity of coal taken out of the mine in a period will be multiplied by the rate per ton, i.e., Rs.

Answer 2

Answer:

The Depletion method is more suitable for the mining industry.

Explanation:

• Depleting method is an accounting technique commonly used in assigning the amount spent on extracting minerals.
• It is usually used for materials that get depleted with use for eg, the Mining industry.
• Therefore, the Depletion method is more suitable for mining industry.