Depreciation : It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life. Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. Amortization: Itis the process of allocating the value of an intangible asset over its definite useful life. To explain: The similarities and differences among depreciation, depletion, and amortization.

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Answer 1

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

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Students have asked these similar questions

Pitt Corp. makes and sells a single product, widgets. Two pounds of sand are needed to make one widget. The budgeted production of widgets for the next two months follows: September October 25,000 units 31,000 units The company wants to maintain monthly ending inventories of sand equal to 20% of the following month's production needs. On August 31, 10,000 pounds of sand were on hand. How much sand should be purchased in September?

MCQ

A smartphone manufacturer uses approximately 48,000 lithium batteries annually. The batteries are consumed at a steady rate during the 260 workdays per year that the factory operates. The annual holding cost per battery is $0.75, and the ordering cost is $30 per order. What is the number of workdays in an order cycle?

Answer 2

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Answer 6

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Answer 7

Chapter 11, Problem 11.1Q

To determine

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Depletion:

It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted.

Amortization:

Itis the process of allocating the value of an intangible asset over its definite useful life.

To explain: The similarities and differences among depreciation, depletion, and amortization.

Answer 8

Expert Solution & Answer

Explanation of Solution

The term depreciation, depletion and amortization are the similar methods used for allocating the cost of tangible and intangible assets based on the useful life. But each term of cost allocation is used to a different type of long-term assets.

Depreciation is used for plant and equipment,
Depletion is used for natural resources, and
Amortization is used for intangible assets.

There are some differences in determining the factor of depreciation, depletion, and amortization, but the concepts involved in the cost allocation are same.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 11.1Q Ch. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Explanation of Solution

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