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Flashcard Content Overview
In business and in life, there is a concept that is relatively easy to understand but often hard to accept: depreciation. Depreciation basically means that from the moment you purchase something, its value plummets. That $45,000 company car might get you $20,000 if you try to sell it after just a few years of driving it. Your company's insurance may only cover part of the cost of a damaged printer depending on how long or how many times it has been used. How does all of this fit into your company budget? This set of flashcards will help you review different ways that depreciation and an item's value are calculated.
This lesson requires a basic understanding of how to work with percentages. To learn more about percentages, please refer to the following lessons:
1. Add life expectancy years (if 3, add 1+2+3).
2. Calculate each year's depreciation percentage: divide years remaining by Step 1 sum.
3. Multiply cost by percentage for that year's depreciation.
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Back To CourseBusiness 110: Business Math
10 chapters | 71 lessons | 3 flashcard sets