Depreciation Cost when Straight Line Method is Assumed Calculator

✖Total Cost refers to the cost of equipment at sight, which includes the unloading and loading charges etc.ⓘ Total Cost [T_c]			+10% -10%
✖Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable.ⓘ Scrap Value [S_c]			+10% -10%
✖Useful Life is termed as an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation.ⓘ Useful Life [n]			+10% -10%

✖Depreciation is an accounting method of allocating cost of tangible asset over useful life. Monetary value of asset decreases over time due to obsolescence. This decrease is measured as depreciation.ⓘ Depreciation Cost when Straight Line Method is Assumed [D]

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Depreciation Cost when Straight Line Method is Assumed Solution

STEP 0: Pre-Calculation Summary

Formula Used

Depreciation = (Total Cost-Scrap Value)/Useful Life
D = (T_c-S_c)/n
This formula uses 4 Variables

Variables Used

Depreciation - Depreciation is an accounting method of allocating cost of tangible asset over useful life. Monetary value of asset decreases over time due to obsolescence. This decrease is measured as depreciation.
Total Cost - Total Cost refers to the cost of equipment at sight, which includes the unloading and loading charges etc.
Scrap Value - Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable.
Useful Life - (Measured in Year) - Useful Life is termed as an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation.

STEP 1: Convert Input(s) to Base Unit

Total Cost: 3500 --> No Conversion Required
Scrap Value: 350 --> No Conversion Required
Useful Life: 5 Year --> 5 Year No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

D = (T_c-S_c)/n --> (3500-350)/5

Evaluating ... ...

D = 630

STEP 3: Convert Result to Output's Unit

630 --> No Conversion Required

FINAL ANSWER

630 <-- Depreciation

(Calculation completed in 00.004 seconds)

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Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

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Depreciation Cost when Straight Line Method is Assumed Formula

LaTeX Go

Depreciation = (Total Cost-Scrap Value)/Useful Life
D = (T_c-S_c)/n

What are the factors affecting the Cost of Owning and Operating the Construction Equipment?

The different major costs contributing to the cost of owning and operating construction equipment are as follows:
1. Depreciation Cost
2. Investment Cost
3. Maintenance and Repair Cost
4. Operation Costs
a. Repair charges
b. Depreciation on tyres and tubes
c. Labour charges
d. Fuel charges
e. Operation and maintenance crew charges
f. Miscellaneous supplies
5. Downtime Cost
6. Obsolescence Cost
7. Replacement Cost

What is Down Time Cost?

Down time is called as a time where the machine does not work due to some repair or adjustments. Down time tends to increase with usage. It denotes the availability of an equipment for actual production and hence can be used to find the productivity of an equipment. Reduced productivity means high unit cost of production.

How to Calculate Depreciation Cost when Straight Line Method is Assumed?

Depreciation Cost when Straight Line Method is Assumed calculator uses Depreciation = (Total Cost-Scrap Value)/Useful Life to calculate the Depreciation, The Depreciation Cost when Straight Line Method is Assumed formula is defined as the value of a fixed asset minus all of the accumulated depreciation that has been recorded against it. Depreciation is denoted by D symbol.

How to calculate Depreciation Cost when Straight Line Method is Assumed using this online calculator? To use this online calculator for Depreciation Cost when Straight Line Method is Assumed, enter Total Cost (T_c), Scrap Value (S_c) & Useful Life (n) and hit the calculate button. Here is how the Depreciation Cost when Straight Line Method is Assumed calculation can be explained with given input values -> 630 = (3500-350)/157784760.

FAQ

What is Depreciation Cost when Straight Line Method is Assumed?

The Depreciation Cost when Straight Line Method is Assumed formula is defined as the value of a fixed asset minus all of the accumulated depreciation that has been recorded against it and is represented as D = (T_c-S_c)/n or Depreciation = (Total Cost-Scrap Value)/Useful Life. Total Cost refers to the cost of equipment at sight, which includes the unloading and loading charges etc, Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable & Useful Life is termed as an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation.

How to calculate Depreciation Cost when Straight Line Method is Assumed?

The Depreciation Cost when Straight Line Method is Assumed formula is defined as the value of a fixed asset minus all of the accumulated depreciation that has been recorded against it is calculated using Depreciation = (Total Cost-Scrap Value)/Useful Life. To calculate Depreciation Cost when Straight Line Method is Assumed, you need Total Cost (T_c), Scrap Value (S_c) & Useful Life (n). With our tool, you need to enter the respective value for Total Cost, Scrap Value & Useful Life and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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