Background on depreciation methods

Article Abstract:

The four most popular depreciation methods are straight-line, sum-of-the-years-digits, declining balance and units-of-production. The straight-line approach, which is the most common among the four, is grounded on the assumption that depreciation is a function of time. Units-of-production is based on the premise that depreciation is a function of usage. Both sum-of-the-years' digits and declining balance are based on the premise that an asset's utility drops substantially across time, which leads to significantly higher depreciation in the early stages of the life of an asset. A number of companies have come to realize that the conventional conservative depreciation methods useful in the 1970s have become irrelevant and unreliable. They have shifted to a production-oriented method of depreciation to better match revenues and expenses.

Methods

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How to Prepare a Request for a Proposal

Article Abstract:

Users making proposals or RFPs should never allow their proposals to exceed the complexity of the system. Bids may be open or closed. Users are advised to list the absolute requirements of the system. Proposals can be written in or out of house, and should list the use and goals of the system, the requirements, and any figures or measurements. Vendors should be allowed adequate time for a response.

Software, System Selection, buyers guide, Hardware Selection, Software Selection, Product selection, Software Retailing, Hardware Vendors, Request for Proposals

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DEPRECIATION PROPOSAL GATHERS SUPPORT

Article Abstract:

THE CURRENT ASSET DEPRECIATION SYSTEM IS TOO COMPLEX FOR SMALL BUSINESSES TO USE. A BILL WHICH WOULD STREAMLINE AND SIMPLIFY DEPRECIATION AND ACT AS A STIMULANT FOR PRIVATE INVESTMENT HAS SIGNIFICANT SUPPORT IN CONGRESS.

Laws, regulations and rules, Investments, Small business, DEPRECIATION

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