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Engineering Economy

What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?

Engineering Economy /
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?

A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation

What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ? Read More »

Engineering Economy

What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?

Engineering Economy /
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?

A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation

What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ? Read More »

Engineering Economy

In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?

Engineering Economy /
In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?

A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method

In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ? Read More »

Engineering Economy

In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ?

Engineering Economy /
In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ?

A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method

In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ? Read More »

Engineering Economy

In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?

Engineering Economy /
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?

A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method

In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ? Read More »

Engineering Economy