Question

In case of a long term asset, repair and maintenance expenses are expected to rise in the later years than in earlier years. Which method is suitable for charging depreciation if the management does not want to increase burden on profit and loss account of depreciation and repair

Answer 1

Answer:

In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year. This is because the cost of depreciation reduces; whereas, repair and maintenance expenses increase in the latter years.