Causes of Depreciation?


Internal and external causes affect depreciation. Wear and tear is one internal cause. Using an item and putting wear on that item will make it depreciate in value. The depletion of an asset will also cause depreciation internally. External factors that affect depreciation are when the item becomes obsolete and replaced by a newer product. The passing of time in which the item is owned also attributes to this, as well as accidents that may cause the item to be damaged or destroyed.
Q&A Related to "Causes of Depreciation?"
When you use items, even under the best conditions, they begin to accumulate wear and tear. This decreases the amount of time the item has left to be used. For example, if a car is
Depreciation is an allocation of cost concept in accounting. (It's kind of based on a physics concept called entropy, which is about things 'wearing out' over time. For example, take
Larry, I have no idea what insurance would run. It varies by size, type of home, location, etc. When you find a home that you're interested in, call an insurance agent to ask about
1 Additional Answer Answer for: causes of depreciation
What Are the Causes of Depreciation?
Depreciate is the term used to describe how the cost of an item gets spread over the item's useful life on a company's books. Items such as buildings, machinery and computers are commonly depreciated items. Companies use depreciation to spread the cost... More »
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