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As the complexity of a task increases and its assessment standards become more abstract,there will be a higher potential that performance measurement will cause confusion.
Depreciation Expense
An accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.
Half-Year Convention
The half-year convention is a method in depreciation accounting where an asset is assumed to have been in service for half the year, regardless of when it was actually acquired during the fiscal year.
Incremental Depreciation
The additional depreciation expense recorded when there is a change in the estimated useful life or salvage value of an asset.
Opportunity Costs
The cost of foregone alternatives, representing the benefits one could have received by taking an alternative action.
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