Depreciation Methods

Depreciation is commonly computed by the straight-line method, the production method, or an accelerated method. the straight-line method is related directly to the passage of time, whereas the production method is related directly to use. An accelerated method, which results in relatively large amounts of depreciation in earlier years and reduced amounts in later years, is based on the assumption that plant assets provide greater economic benefit in their earlier years than in later years. The most common accelerated method is declining-balance method.

• Accelerated Method
• Declining-balance Method
• Double-declining-balance Method
• Production Method
• Straight-line Method