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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Depreciation question
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.
do you mind sending me this question.thanks
