Depreciation is nothing but an allocation of the purchase price over different accounting periods. Do you agree

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“Depreciation is nothing but an allocation of the purchase price over different accounting periods.” Do you agree with this statement? If so, identify the elements of cost allocations (cost pool, cost objects, cost driver, denominator volume) implicit in the computation of depreciation. If not, identify differences between cost allocations and depreciation.

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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