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. Depreciation methods focus on allocating the cost of an asset over its useful life, considering factors like physical deterioration, obsolescence, and repair/maintenance policies, but not the current replacement cost of the asset.

Which of the Following Factors Is Not Related to the Decline