Explain Why a Computer Might Depreciate Rapidly Just in One

question 66

Essay

Explain why a computer might depreciate rapidly just in one year even if it is in just as good of a condition as the day it was purchased?

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Definitions:

Production Department

A production department is a specialized unit within a manufacturing firm that is responsible for the process of converting raw materials into finished goods.

Allocated Per Unit

The process of assigning a portion of total costs directly to individual units of production or service.

Plantwide Factory Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory to allocate overhead costs to products.

Activity-based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into creating them, aiming for more accurate costing.