Proceedings of 9th Asian Business Research Conference
20-21 December, 2013, BIAM Foundation, Dhaka, Bangladesh ISBN: 978-1-922069-39-9
Choice of Depreciation Methods in Manufacturing Organizations in
Bangladesh
Rehana Fowzia
The depreciation is to be determined and provided in the accounts to find
out the correct cost of production. As an asset is put to use for earning
profit, it loses its value over a period of time. That is, part of the asset is
consumed year after year in the process of its usage. If depreciation is
not provided, the asset will appear in the balance sheet at a value higher
than its worth. The real object of providing deprecation is to keep the
capital intact. Theoretically, There are many methods of depreciation, but
practically there are four common methods which are being used by
manufacturing organizations such as straight-line method, declining
balance method, units of activity method and sum-of-years- digit method.
This study focus on the usage rate of particular depreciation method by
manufacturing organizations in Bangladesh and also the reasons behind
this usage.
Keywords: Depreciation methods, Manufacturing Organizations, Advantages.
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Rehana Fowzia, Assistant Professor, Department of Business Administration, Stamford University Bangladesh.
Email: rehana.fowzia@gmail.com, Contact: 01715347976