Tuesday, November 15, 2011

Accounting Question 19.9?

Certainly all of the statements are true. Probably the most appropriate for the company is the second one. You are placing the cost of the et into the periods that use the et. There are some processes that actually depreciate the et based upon the usage of the equipment. Most companies do not use that because the cost of keeping track of the usage is too much for the benefit.

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