Which of the following factors is not related to the decline in the usefulness of plant and equipment assets,and therefore does not need to be considered in selecting an appropriate depreciation method?
A)Physical deterioration
B)Obsolescence
C)Repair and maintenance policies
D)Current replacement cost

Question

Quizplus · Accepted Answer

Current replacement cost is not related to the decline in the usefulness of plant and equipment assets, as it refers to the cost of replacing an asset with a newer, more modern version, while depreciation methods are used to account for the decreasing value of the existing asset over time. Factors such as physical deterioration, obsolescence, and repair and maintenance policies impact the usefulness and value of the asset, and should be considered when selecting an appropriate depreciation method.

Which of the Following Factors Is Not Related to the Decline