SOFTWARE PROJECT MANAGEMENT
PROJECT SCHEDULING AND TRACKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Decelerated depreciation
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Straight-line depreciation
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Accelerated depreciation
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Life cycle costing
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Detailed explanation-1: -A double-declining balance method is a form of an accelerated depreciation method in which the asset value is depreciated at twice the rate it is done in the straight-line method. Since the depreciation is done at a faster rate (twice, to be precise) than the straight-line method, it is called accelerated depreciation.
Detailed explanation-2: -The double-declining balance (DDB) method is an accelerated depreciation method. After taking the reciprocal of the useful life of the asset and doubling it, this rate is applied to the depreciable base-also known as the book value, for the remainder of the asset’s expected life.
Detailed explanation-3: -Accelerated depreciation is a depreciation method in which a capital asset reduces its book value at a faster (accelerated) rate than it would using traditional depreciation methods such as the straight-line method.