Hanan Al Wahaibi is an organization manufacturing a machine tool. Due to increase in demand they bought an additional machinery on 1st June 2019 at a cost OMR 100,000. The machinery can be operated for 4 years and has a useful life of 4 years.  The machine could be operated for a total of 50,000 hours . The machine has a residual value of OMR 20,000. The machine hours used in 2019 is 4500 hours whilst in 2020 , 3900 hours. Required;   Calculate the depreciation for the year 2019 using each below method; Activity Based Method Straight line method Reducing Balance Method/ Written down value method

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.