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Fixed Installment Method of Calculating Depreciation:
This is the most primitive method of calculating the depreciation of an asset. Here, the primary assumption which is made is that the asset undergoes an equal depreciation throughout its entire lifetime. That is, it is assumed that the asset has been subjected to equal usage for the entire time it was in business. This method is also known as the straight line method because a graphical representation of the depreciation (by marking time on one axis and usage on the other) would show a straight line.
It is also referred to as the fixed or equal installment method because the amount of depreciation remains unchanged. To understand the concept better, on to have an assignment completed before time, students can use our Fixed or Equal Installment or Straight Line Method or Depreciation on Original Cost Homework Help which is easily available to them. You can access our help by simply visiting myhomeworkhelp.com.
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