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Depreciation is the process of allocating the cost of a plant asset to expense in the accounting periods benefiting from its use. Depreciation does not measure the decline in the asset’s market value each period Alex Smith Womens Jersey , nor does it measure the asset’s physical deterioration. Since depreciation reflects the cost of using a plant asset, depreciation charges are only recorded when the asset is actually in service. Factors that determine depreciation are:

• Cost The cost of a plant asset consists of all necessary and reasonable expenditures to acquire it and to prepare it for its intended use.

• Salvage Value The total amount of depreciation to be charged off over an asset’s benefit period equals the asset’s cost minus its salvage value. Salvage value, also called residual value or scrap value, is an estimate of the asset’s value at the end of its benefit period. This is the amount the owner expects to receive from disposing of the asset at the end of its benefit period. If the asset is expected to be traded in on a new asset, its salvage value is the expected trade-in value.

• Useful Life The useful life of a plant asset is the length of time it is productively used in a company’s operations. Useful life, also called service life Troy Apke Womens Jersey , might not be as long as the asset’s total productive life. For example, the productive life of a computer can be eight years or more. Some companies, however, trade in old computers for new ones every two years. In this case, these computers have a two-year useful life, meaning the cost of these computers (less their expected trade-in values) is charged to depreciation expense over a two-year period.

Several variables often make the useful life of a plant asset difficult to predict. A major variable is the wear and tear from use in operations Geron Christian Womens Jersey , the other variables, obsolescence and inadequacy, also require consideration. Inadequacy refers to the insufficient capacity of a company’s plant assets to meet its growing productive demands. Obsolescence refers to the condition of a plant asset that is no longer useful in producing goods or services with a competitive advantage because of new inventions and improvements. Both inadequacy and obsolescence are difficult to predict because of demand changes, new inventions, and improvements.

A company usually disposes of an inadequate or obsolete asset before it wears out. Depreciation methods are used to allocate a plant asset’s cost over the accounting periods in its useful life. The most frequently used method of depreciation is the straight-line method. Another common depreciation method is the units-of-production method. Straight-line depreciation charges the same amount of expense to each period of the asset’s useful life. A two-step process is used. We first compute the depreciable cost of the asset, also called the cost to be depreciated. Arts And Crafts Market 2017-2024 Global Key Players: BEHR Process Corporation Derrius Guice Womens Jersey , Faber-Castell, Fiskars, Mundial, Paper Mate, Parker, Pentel Da'Ron Payne Womens Jersey , Pilot-Pen, PPG Architectural, and Westcott
by newshub · October 5, 2018


The Arts And Crafts Market Report offers a complete picture of industry trends and factors along with quantitative data based on historical data and from various sources. Apart from this, the report also provides the market outlook, growth Authentic Sean Taylor Jersey , share, size, opportunity and forecast during 2018-2024. Further, the report focuses on competitive landscape including company profiles of leading key players along with industry demand, future capacities, key mergers & acquisitions Authentic Samaje Perine Jersey , financial overview in the global market of arts and crafts.


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Market Dynamics


The booming arts and crafts industry with a touch of contemporary arts and designs along with the flourishing of the fashion industry is driving the market of arts and crafts. Also, demand for handicraft products along with the development of the retails sector that offers handicrafts products is further propelling the demand for the handicraft product. However, the dearth of skilled labor and less interest of the young people in the craft industry is the only major factor that can hamper the growth of the market.


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