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Depreciation question

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Depreciation question

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by zwahira.
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  • May 16, 2014 at 10:15 am #169012
    mansoor
    Participant
    • Topics: 423
    • Replies: 541
    • ☆☆☆☆

    True or False

    in the reducing balance method, the product unit costs decline from year to year if output stays the same.

    the answer is true but my calculations are as follows:

    Value of asset: 10000, reducing bal at 20%

    year 1 2000
    year 2 1600
    year 3 1280

    the depreciation charge falls every year so the unit cost must go up.

    May 26, 2014 at 11:14 am #170895
    zwahira
    Member
    • Topics: 26
    • Replies: 44
    • ☆☆

    do you mind sending me this question.thanks

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