Railways Technical Ability Production Engineering and Planning Question Bank Production Planning

  • question_answer A piece of equipment has been purchased by the city for Rs. 10,000 with an anticipated salvage at Rs. 500 after 8 years. Which of the depreciation models will yield the greatest reduction in the book value of the equipment?

    A) Straight line depreciation

    B) Sum-of-years digits depreciation

    C) Declining balance depreciation

    D) Declining balance depreciation is switched to straight line.

    Correct Answer: D


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