Depreciation of Goods Value

Definition of Depreciation 

Depreciation is the reduced economic value of an asset. Reduced value is usually due to wear worn or due to useful life.

In order for a company to grow in a balanced way, one of the companies must know or estimate the depreciation of its assets properly and appropriately until in turn the company can use these forecasting results as a further basis of operations.

The Way of Calculating Depreciation

To determine the amount of depreciation expense in each period, there are several methods that can be used, including:

1. Straight-line method
2. The declining balance method
3. Unit production method
4. Working hours Unit of Assets Method
5. Number of years Method

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Referensi :

• To'Ali's book math group accounting and sales

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