The factor that determine the periodic depreciation charge are?
Answer Details
The factors that determine the periodic depreciation charge are the asset cost, the estimated useful life of the asset, and the estimated salvage value (or residual value) of the asset.
Asset cost refers to the initial cost of acquiring or constructing the asset, which includes all expenses related to getting the asset ready for its intended use.
Useful life refers to the period over which the asset is expected to provide benefits, which is typically estimated based on the expected wear and tear or obsolescence of the asset.
Salvage value (or residual value) refers to the estimated value of the asset at the end of its useful life, which represents the amount that the asset can be sold for or used for after it is no longer useful to the business.
The periodic depreciation charge is calculated by dividing the depreciable cost (which is the asset cost minus the estimated salvage value) by the estimated useful life of the asset. This charge is taken as an expense in the accounting records of the business over the useful life of the asset, reflecting the gradual consumption of the asset's economic benefits.