Examlex
A farmer applies pesticides to a crop to save it from insect damage.Although the farmer benefits immediately from using pesticides, other farmers follow suit and the local water system is eventually damaged permanently.This is an example of
Units-of-Activity Method
A depreciation method where the expense is based on the number of hours used or units produced by an asset, rather than the passage of time.
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.
Residual Value
The estimated value of an asset at the end of its useful life.
Component Depreciation
The practice of depreciating parts of an asset separately in order to more accurately reflect their useful lives and value.
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