Asked by Akadiri Olalekan on May 01, 2024
Verified
The depreciable cost of a plant asset is its original cost minus obsolescence.
Depreciable Cost
The total amount that can be depreciated over an asset's useful life, typically the cost of the asset minus its salvage value.
Obsolescence
The process of becoming outdated or no longer used, often due to technological advancements or changes in preferences.
- Familiarize yourself with the frameworks and operational practices pertinent to asset depreciation.
Verified Answer
JD
Jarrod DavisMay 03, 2024
Final Answer :
False
Explanation :
The depreciable cost of a plant asset is its original cost minus its salvage value, not obsolescence. Obsolescence refers to an asset becoming outdated or no longer useful due to advancements in technology, changes in market demand, or other factors, but it is not directly subtracted from the original cost to determine depreciable cost.
Learning Objectives
- Familiarize yourself with the frameworks and operational practices pertinent to asset depreciation.
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