__________method is suitable for assets which are affected by technological changes and more repair cost.

Straight line method

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Written down method

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Both A and B

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Written down method
Written down value method is suitable for those assets in relation to which (a) the amount of repairs and renewals goes on increasing as the asset grows older (b) the possibilities of obsolescence are more. This method is suitable for plant and machinaries, building etc.

Suggest Corrections

Similar questions

Q. " In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year".

Which method, is suitable for charging depreciation if the management does not want to increase burden on profits and loss account of depreciation and repair.

Q. Under written down value method it is ______________________ to ascertain a suitable rate of depreciation.

"In case of a long-term asset, repair and maintenance expenses are expected to rise in later years than in the earlier year." Which method, is suitable for charging depreciation if the management does not want to increase the burden on profits and loss account on account of depreciation and repair.

Q. How does a cost saving technological progress affect market price and the quantity exchanged of a commodity? Use diagram.

Q. Obsolescence of a depreciable asset may be caused by
(I) Technological changes.
(II) Improvement in production method.
(III) Change in market demand for the product or service output.
(IV) Legal or other restrictions.
The correct option is -

Join BYJU'S Learning Program