Depreciation is based on historic cost.

Name: Depreciation is based on historic cost.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

Depreciation is calculated based on the historical cost of an asset, which includes the original cost of purchase, installation, and any other associated costs. This is because the cost of the asset is the basis for calculating the amount of value that has been used up or consumed over time through wear and tear, obsolescence, or other factors.

Depreciation Is Based on Historic Cost