Depreciation measures:
A)the total cost of a capital input.
B)the annual cost of a capital input that a company actually owns itself.
C)the amount for which a capital input could be sold.
D)the amount of cost for each worker.
E)none of the above.

Question

Quizplus · Accepted Answer

Depreciation measures the annual cost of a capital input that a company actually owns itself. This cost is spread over the useful life of the asset and reflects the wear and tear or obsolescence it suffers over time.

Depreciation Measures