Question

difference between economic life and useful life.

Answer 1

Answer:

In economics, Economic life and Useful life both play a huge role in our society both in economic terms.

Economic life can be defined  :

• It is a period or a period where an asset is economically usable for one or many users.

• It is also defined as the number of products from that asset.

Useful life can be defined:

• It is defined as the period over which an asset is expected to be available for use by an entity (which means to analyze the period of the asset allocation)
• It can be also termed as the number expected to be obtained from the asset by the entity).

Note: Useful Life can be specific to the entity which can shorten the period, in economic terms useful is not taken into consideration because of its shortened period or equal to the economic life.

         On the other hand, economic life has more weighted than the useful life of an asset is defined in terms of the asset’s expected usefulness to a particular entity.