depreciation is basis of appointment
Answers
Answer:
Machine depreciation is apportioned to all departments on the basis of machine value. Indirect labour costs are allocated directly to all departments based on the indirect labour budget for each department.
Answer:
"depreciation is the basis of appointment" because the APPOINTMENT of the new asset is only advisable and profitable when the old asset touched the last degree of DEPRECIATION.
Explanation:
The basis of Depreciation is the amount of cost of a fixed asset that can be depreciated over time. This amount is the acquisition cost of an asset less its estimated salvage value at the end of its useful life. Acquisition cost is the purchase price of an asset plus the cost incurred to put the asset into service. Therefore, the cost of purchase may include sales taxes, customs duties, freight charges, on-site changes (such as wiring for the asset or concrete underlayment), installation fees, and testing costs.
Many organizations plan to use an asset and then scrap it. If so, they assume no salvage value, then an asset's depreciation basis is the same as its cost. Using no salvage value in deriving the depreciation basis is the standard approach as it reduces the complexity of the depreciation calculation.
Definitely, when an asset is depreciated, a scope of appointment is generated, thus proving the statement itself “Depreciation is the basis of appointment “.