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What is most common Depreciation Method?

A) Reducing Balance

B) Straight Line

C) Sum Of Digits

D) Production Units

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Question added by Wasim khan wazir , Finance Specialist , Mott Macdonald
Date Posted: 2015/06/26
mohammad saqib
by mohammad saqib , Research Analyst , Capital IQ

It is not apt to directly make conclusion to end up by saying A, B, C,

 Rather it is appropriate to say it depend on which product or resource we are using.   Depreciation is a systematic or gradual reduction, rational process of distributing the cost of tangible assets or intangible over the life of assets. we have different method of depreciation as below

 Depreciation methods based on time            Straight line method            Declining balance method                      Sum-of-the-years'-digits method      Depreciation based on use (activity).. but yes most common method is SLM.( straight line method , or  SLM..reducing balance method.

Sigalla Ndiapa
by Sigalla Ndiapa , Network Marketer , Happy World Meal Gate

It is the strajght line method

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option A is the right answer.

Anwar Hossain
by Anwar Hossain , Relationship Officer (Officer Grade-I) , BRAC Bank Limited

The most depreciation common method is Straight Line.

The Straight Line Method is the most common one.

B. The most common Method is Straight Line Method.

generally Straight line method is used

 

   

in fact straight line method is the most used one ,but the purpose behind depreciation methods is the (matching) fair allocation of these costs against revenue generated . u can should use the method that gives u the fair allocation whatever is it.

Lilian Hilario
by Lilian Hilario , Clerical , Clarion Manufacturing Corp.,of the Phils.

The most common depreciation method to production units

Most common and most easy:

B) Straight Line

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

B is the correct answer 

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