Typically When Firms Talk About Depreciation They Are Usually Referring

question 44

Essay

Typically when firms talk about depreciation they are usually referring to the deprecation of physical capital assets. However, how any why might it be possible for there to be deprecation in human capital?

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Definitions:

Standard Of Living

The standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Goods And Services

The outputs offered by businesses and the economy to satisfy individual or collective needs or wants.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Physical Capital

The stock of tangible, non-financial assets that are used in the production of goods and services, such as machinery and buildings.