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| 1. |
Why it is necessary to provide depreciation to ascertained the real cost of production |
| Answer» ASED on the cost of assets consumed in a business and not on its market value. ... DEPRECIATION is allocated so as to CHARGE fair PROPORTION of depreciable amount in each accounting PERIOD during the expected useful life of the asset. Depreciation includes amortisation of assets whose useful life is pre-determined” | |